New Prime Minister Andy Burnham has cut business rates bills for pubs, social clubs and live music venues across England from April next year.
New business rate cuts will benefit nearly 32,000 pubs, clubs and live music venues, saving the typical pub an estimated £1,100 in the next financial year, providing much-needed certainty for businesses looking to invest, grow and create jobs.
The changes will be fully funded, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.
The government said it will also crack down on businesses that sell through online marketplaces but do not comply with their tax obligations, putting them at an unfair advantage over businesses that play by the rules.
Prime Minister Andy Burnham said: “For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
“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. They help make a place what we love. 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.”
Commenting on the announcement, James Burgess, head of commercial at Atradius, said: “Pubs, clubs and live music venues have faced sustained pressure from higher wages, energy bills, rent, supply costs and cautious consumer spending, so a 20% cut in business rates will be a welcome source of relief.
“For a typical pub, an estimated £1,100 saving next year could help ease cashflow pressures and protect jobs, although it is unlikely to transform the outlook on its own. Many hospitality businesses continue to operate on tight margins.
“The proposed review of reliefs for businesses deemed not to make a positive contribution to local communities raises questions about how that judgement will be made. Vape shops are the example given, but the government will need clear and objective criteria to avoid creating uncertainty for other legitimate businesses and employers.
“Support that genuinely reduces the overall cost burden will give viable venues more room to invest, pay suppliers and withstand further shocks to their cashflow.”
