London, United Kingdom. Prime Minister Andy Burnham said on Thursday that business rates for pubs, clubs and live music venues would be cut by 20% from April, as part of efforts to reduce cost pressures and revive communities.
The measure is expected to benefit nearly 32,000 venues and save a typical pub about £1,100 next year.
Cost and industry impact
The policy will cost the government £100 million a year. It is expected to be welcomed by independent venues and pub groups including J D Wetherspoon, Marston’s and Fuller, Smith & Turner.
However, the measure does not meet the sector’s demand for a halving of sales tax for hospitality businesses.
Government measures
Burnham said the government was seeking to demonstrate that it could quickly reduce living costs after his predecessor, Keir Starmer, spent his first months in office commissioning reviews of possible policy changes.
The business rates cut follows the removal of a tax from domestic electricity bills on Tuesday and the introduction of a bus fare cap on Wednesday.
“For too long, governments have stood by while cherished venues have disappeared from our local high streets,” Burnham said in a statement. “So today I am changing that.”
“This government will back the businesses that people want to see in their communities.”
Hospitality pressures
A hospitality survey released in July found that 23% of respondents were operating at a loss, while 5% said their businesses were no longer viable.
The industry has called for greater support since the COVID pandemic, citing rising wages, energy bills and rents alongside muted consumer spending.
The government said the rates cut would be funded partly through a review of relief for businesses, including vape shops, that it said do not make a positive contribution to local communities.
