Prime Minister Andy Burnham has announced business rate cuts for pubs, clubs and live music venues. The 20% discount, not available to the very largest live music venues, is expected to save a typical pub around £1,100 a year.
Funding and impact
The measure is expected to cost the Government £100 million a year, and will be funded through a review of reliefs for businesses that “do not make a positive contribution to local communities”, such as vape shops. The Government also said it is cracking down on online marketplaces that do not comply with tax obligations.
Mr Burnham previously pledged to raise taxes on out-of-town warehouses for online giants such as Amazon to help pay for cuts to rates for hospitality firms.
Government statements
Mr Burnham said: “This Government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.”
Chancellor of the Exchequer John Healey said: “Pubs, clubs and live music venues are at the heart of communities across the UK. We are determined to bring hope back, give businesses the support they need and generate growth in every postcode.”
Industry reaction
The Music Venues Trust welcomed the move as “an encouraging first step” and said they would work with Government to “ensure that all grassroots music venues in England are recognised and eligible”.
The British Beer and Pub Association said they were “delighted” at the new backing for pubs. Emma McClarkin, BPPA chief executive said: “We now look forward to working with Government to deliver permanent business rates reform so we can keep the pub in its rightful place; at the heart of our communities.”
Further reforms
The Government will look to set out further reform to the wider business rates system, including small business rates relief, at the Budget, as part of Mr Burnham's focus on the public and communities. Mr Burnham has also announced plans to remove VAT from electricity bills and reinstate a £2 cap on single bus fares across England.
