Prime Minister Andy Burnham has announced a 20 percent reduction in business rates for pubs, clubs, and live music venues across England, a move intended to support businesses vital to local communities and alleviate the cost of living crisis. The policy is expected to provide a significant financial relief, saving a typical pub approximately £1,100 annually.
This discount will extend to nearly 32,000 hospitality businesses. However, it will not apply to the largest live music venues. The funding for this initiative will be generated through a review of tax reliefs for businesses deemed not to contribute positively to local communities, such as vape shops, and a stricter enforcement of tax compliance for online marketplaces.
Previously, the Prime Minister had signaled an intention to increase taxes on out-of-town warehouses used by major online retailers like Amazon, with the aim of funding reductions in hospitality sector rates. Burnham stated, "This government will back the businesses that people want to see in their communities." He further emphasized, "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."
The government also indicated that further reforms to the broader business rates system, including small business rates relief, are planned for announcement at the upcoming Budget.
This business rate cut follows a series of measures introduced by Burnham's administration to address the rising cost of living. Just a day prior, he announced a cap on bus fares at £2 across England, funded by reallocating existing government resources. This policy mirrors a similar initiative Burnham implemented in Greater Manchester during his tenure as mayor.
Earlier in the week, the government revealed plans to reduce VAT on electricity bills, a measure estimated to save households around £45 per year.