Pubs, clubs and live music venues in England will receive a 20% business rates cut from April, under a policy announced by Prime Minister Andy Burnham, according to the BBC and The Guardian. Burnham described the 20% business rates cut for pubs as a “first step” during a visit to the Hare Inn in Harlow, Essex, alongside Chancellor of the Exchequer John Healey, on Thursday. The announcement marks the third cost-of-living policy unveiled by Burnham in his first week in office, following a bus fare cap and a VAT cut on household electricity bills.
The government said the rates cut will cost around £100m and will be funded through a review of tax reliefs given to businesses that are seen as not making a “positive contribution” to local communities, such as vape shops, according to the BBC. Burnham later said gambling arcades would also be targeted to help fund the policy, describing such venues as capable of bringing “real harm to communities.” The Guardian reported that the cut will benefit almost 32,000 pubs, clubs and live music venues in England, with a typical pub expected to save an estimated £1,100 in the next financial year.
“For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that,” Burnham said, according to The Guardian. He added that pubs are part of “our heritage” and “working class culture,” and said the government would “back the businesses that people want to see in their communities.” Speaking to reporters, Burnham said pubs “need to know that the cavalry is coming.”
The policy does not extend to restaurants, cafes, hotels or cinemas, which pay business rates but were not included in Thursday’s announcement, the BBC reported. Kate Nicholls, chair of UKHospitality, gave the announcement a “qualified welcome,” saying that while support for pubs, bars and live music is welcome, restaurants, cafes and hotels remain the “backbone of the high street” and should also be considered for relief. Chef and pub owner Tom Kerridge told the BBC the estimated £1,100 annual saving “doesn’t really make a difference,” and called for a cut to hospitality VAT instead.
Wetherspoon founder Tim Martin described the rate cut as “a small move in the right direction” but urged the government to also reduce VAT for pubs, according to the BBC. The Federation of Small Businesses welcomed the proposal but said it should be a “downpayment” on further support at the next budget. The Music Venue Trust called the announcement “an encouraging first step,” while also asking the government to widen eligibility criteria so that all grassroots music venues qualify.
Conservative leader Kemi Badenoch criticised the government’s approach, asking “Is that it?” in response to Burnham’s announcement, and said the prime minister needed to rule out tax rises to fund what she described as a “spending spree,” according to the BBC. Today’s announcement does not apply in Scotland, where business rates remain under the control of the Scottish government, though the Scottish Licensed Trade Association has called for similar relief to be introduced north of the border.
The new relief is expected to provide some immediate financial support to hospitality businesses facing rising operating costs, including higher wages, energy bills and other expenses. However, industry groups have indicated that business rates relief alone may not be enough to address the wider financial pressures affecting pubs and entertainment venues across England.
Further details on business rates relief eligibility and related government policy are available through the UK government’s official website. The announcement comes during a period of active cost-of-living and business policy news internationally; StudioX News has separately reported on other recent business developments, including Amazon Business’s $60 billion sales milestone.
I am Rukaiya Kadiwala, an experienced News Content Writer with 6+ years of expertise in hospitality, travel, hotel, restaurant, business, and lifestyle news. Skilled in writing, research, fact-checking, headline creation, and digital publishing, I create accurate, engaging, and high-quality content that informs and attracts readers worldwide.
