British Prime Minister Andy Burnham on Thursday announced a new 20 percent cut in business rates for pubs, clubs and live music venues in England from April, saying the move would provide much-needed relief to struggling businesses and reassure pub owners that “the cavalry is coming.”“According to the BBC, the new discount is expected to benefit around 32,000 venues and save the average pub around £1,100 ($1,472) over the next year.The measure will cost the government around £100 million and will be funded through changes to tax relief for businesses such as vape shops and tougher enforcement against firms that do not meet their tax obligations.
‘Pubs are our heritage’
Defending the move, Burnham described pubs as an essential part of Britain’s social fabric. “It’s our heritage. It’s working-class culture. Once the pubs go, they don’t come back,” he said.Describing the relief package as a “first step”, Burnham said the government wanted to support businesses that communities value and ensure pubs remain at the heart of local life.
What is included in relief
The extra 20 per cent cut will come into effect from April 2027 and will come on top of the 15 per cent business rates cut introduced earlier this year for pubs and music venues.The government said details on eligibility, including which live music venues are eligible, will be outlined in Chancellor John Healey’s first budget this autumn.
Restaurants and hotels want broader support
Hospitality groups welcomed the announcement but argued it does not go far enough. UKHospitality chief executive Alan Simpson said the measures were a positive start but stressed that restaurants and hotels also needed meaningful relief.He said restaurants are facing huge financial pressures, while hotels are expected to see a significant increase in business rates, urging the government to deliver on the sweeping reforms promised in Labour’s 2024 election manifesto.Holiday operator Butlins also questioned why key parts of the hospitality sector were left out of the latest support.
part of a broader cost-of-living boost
The business rates announcement is Burnham’s third major policy move since taking office earlier this week. He has already promised to remove VAT from household electricity bills and cap bus fares across England outside London at £2.Finance Minister John Healey said the government wants to reduce the overall cost of doing business while maintaining fiscal discipline, adding that restoring confidence among employers and investors will be central to the government’s economic agenda.However, business confidence is being hit by concerns over higher energy prices amid new tensions involving Iran, while the UK government’s borrowing costs rose on Thursday.A recent survey of the hospitality industry also found that almost one in four businesses were loss-making, highlighting the financial pressures facing the sector.