Prime Minister Andy Burnham has announced a 20% reduction in business rates for pubs, clubs, and live music venues across England, a measure expected to benefit nearly 32,000 hospitality businesses. This relief is projected to save a typical pub approximately £1,100 annually, though the largest live music venues will not qualify.
The funding for this business rates overhaul will come from a review of reliefs for businesses deemed not to contribute positively to local communities, such as vape shops, and a crackdown on non-compliant online marketplaces. This aligns with a previous pledge by the Prime Minister to increase taxes on out-of-town warehouses used by online retail giants to help finance hospitality sector tax cuts.
"This government will back the businesses that people want to see in their communities," Burnham stated. "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 John Healey echoed this sentiment, saying, "Pubs, clubs and live music venues are at the heart of communities across the UK. They bring people together, support local jobs and help keep high streets and town centres busy – which is why we will back them all the way. We are determined to bring hope back, give businesses the support they need and generate growth in every postcode."
This policy is part of a series of measures by the new administration to address the cost of living crisis. Previously, Burnham announced a £2 bus fare cap in England, funded by reprioritizing government funds, a measure he had previously implemented in Greater Manchester. Earlier in the week, plans were laid out to cut VAT on electricity bills, a move anticipated to save households around £45 annually.
In recent governmental appointments, Burnham has made Scottish Labour leader Anas Sarwar a lord and minister in the Department for Business, Innovation, Science and Trade.
Inter-Governmental Meetings
Burnham is scheduled to meet with the leaders of Scotland and Wales. He will meet with First Minister of Scotland John Swinney and First Minister of Wales Rhun ap Iorwerth in Glasgow. While Burnham advocates for further devolution, both Swinney and ap Iorwerth seek independence for their respective countries. Burnham has stated his focus is on delivering growth rather than considering referendums.
"When I say we need good growth in every postcode, I mean every postcode across the whole of the UK. Every place and every person matters," Burnham remarked ahead of the meetings. "I'm not focused on point scoring or discussing constitutional changes like referendums, I want practical measures to help people live well and bring back hope."
First Minister of Wales Rhun ap Iorwerth expressed his anticipation for the meeting, stating, "It is fitting that we meet in Scotland, as it underlines Wales's case for parity of powers and a fairer funding model that reflects our needs. Number 10 North must not become just Whitehall with a different postcode."
Ap Iorwerth added, "I agree wholeheartedly on empowering communities – it's at the heart of my politics – but decisions affecting Wales should be made in Wales, and it is for the Welsh Government and our Senedd to work with the people of Wales on how power is exercised and shared within our nation. At a time when families are still feeling the pressure of the cost of living, I am also keen to discuss how our governments can work together as equal partners to deliver improvements to the lives of people in Wales."
The Prime Minister is also slated to attend the opening ceremony of the 2026 Commonwealth Games on Thursday. He is expected to meet with the First Minister and Deputy First Minister of Northern Ireland in August as part of a tour of the United Kingdom.