Prime Minister Andy Burnham's announcement of a 20% cut in business rates for nearly 32,000 hospitality businesses from April 2026 has drawn a mixed response from Greater Manchester's pub and club owners. The cut, which will cost around £100m annually and save a typical pub about £1,100 a year, follows a 5p cut in Rachel Reeves' 2025 Budget and 15% relief announced in January.
Welcome news but concerns remain
Sacha Lord, Greater Manchester's night time economy adviser from 2018 until last year, described the announcement as 'incredible news' for businesses that have been 'so worried and so slammed over the last few years'. 'It's a breath of fresh air,' he said. 'The average pub is going to be in the region of £1,100 better off but I think, more than anything, it's going to give people a bit of hope.'
Neil Burke, who runs the Black Friar in Salford and the Horse & Jockey in Chorlton, said the cuts are a welcome starting point that will give operators 'breathing room'. 'Every little helps, for sure. It's a great start, it's significant. Andy said he was going to look after hospitality and that it was one of his focuses - so good on him because he's been straight in there and done something.'
VAT reductions still needed
Burke noted the relief won't lead to drops in the price of a pint or roast dinner. 'That's what we need VAT reductions for. I don't want to be sceptical or negative in any way, but there is a slight concern about what this will mean for those much-needed cuts to VAT and whether that will be forgotten about now. Reducing VAT is still the biggest impact that is going to happen for us.'
William Lees-Jones, managing director of JW Lees, which runs more than 150 pubs across the north west and North Wales, echoed the sentiment that the cut is a 'start'. 'I do very much see it as the sector being taken seriously by the government. It's a positive thing and could see us heading in the right direction.'
Funding and scope questioned
The government said the cuts will be funded through a review of reliefs for businesses that 'do not make a positive contribution to local communities', such as vape shops, and a crackdown on online marketplaces that do not comply with tax obligations. Burke said impacting vape shops is a good idea but added: 'There is a slight part of me that thinks it's a bit of a gung-ho, off-the-cuff approach. I would have thought it's something that would have taken a few weeks or months to properly get to grips with.'
Charlotte Heyes, who runs Nell's pizzeria and bar across six sites in Greater Manchester, said the announcement 'signals to a lot of people his intent' but noted that restaurants are not included. 'The fact that restaurants aren't included is an issue. We hope there will be a more comprehensive package to support the high street and wider hospitality sector that follows.'
Prime Minister defends early move
Burnham said he needed to let pubs 'know that the cavalry is coming', adding that it was a significant 'first step'. 'This is, to me, our heritage. It's working class culture. Once pubs are gone, they don't come back. So we've just got to signal what support when we can. This is a significant cut to the business rates that pubs and other venues pay.'
Lord expressed confidence in further announcements. 'I am confident there are going to be some more further announcements coming this way. I've had good conversations with him about it. We're going to see some nice changes in the next few months, I really do believe it.'
