Burnham to cut pub business rates by 20 per cent
Andy Burnham has unveiled a 20 per cent cut to business rates for pubs, clubs and music venues.
The £100m commitment will be funded by cracking down on businesses, like vape shops and tax-avoidant online sellers, which “do not make a positive contribution to local communities,” the government said.
The measure comes as part of Burnham’s pledge to give Brits “breathing space” on the cost of living, though this is the first policy to be aimed at businesses.
Pubs and hospitality venues have been campaigning for a cut to business rates after their tax bills were sent soaring by Rachel Reeves’ Autumn Budget last year.
The Prime Minister said this policy is proof that his government will “back the businesses that people want to see in their communities” rather than standing by while “cherished venues have disappeared from our local high streets”.
The cut to business rates for pubs had been a key pledge during Burnham’s campaign during the Makerfield by-election.
Funded by £100m crackdown on vape shops
During the campaign pledge, Burnham had accused Keir Starmer of “undervaluing” pubs. Labour had “got this wrong in government,” he said.
Chancellor John Healey said: “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.”
The tax cut was welcomed the British Beer and Pub Association (BBPA), which praised Burnham for providing “new backing to our nation’s pubs as he promised”.
Emma McClarkin, the trade body’s chief executive, said: “The local has and always will be more than just a place to get a pint; it creates jobs, it’s our nation’s living room, it’s the anchor of the high street, so this sorely needed discount will be celebrated by pubs up and down the country.
“We now look forward to working with Government to deliver permanent business rates reform so we can keep the pub in its rightful place; at the heart of our communities.”
‘Not real reform’
Calls for the government to reform the business rates system have come from beyond the hospitality sector, with high street retailers saying the tax disadvantages them in comparison to online sellers.
A group of retail trade bodies has called on Burnham to cut business rates for all high street businesses by 37 per cent by imposing a two per cent levy on online sales.
Ros Morgan, chair of the Real Rates Reform Alliance, called on the Prime Minister to use the Budget to set out “real reform” to business rates which benefits all brick and mortar firms.
“Targeted support for a small number of sectors is not a substitute for fundamental reform. Every business that invests in physical premises, from retailers and manufacturers to offices, hotels, theatres and leisure businesses, is being held back by an outdated property tax that penalises investment, suppresses growth and puts jobs at risk,” she said.
Kate Shoesmith, director of policy at the British Chambers of Commerce, said: “While news of a carve out for pubs, clubs and music venues is welcome, there are many other smaller hospitality companies facing an existential threat. Meanwhile at the other end of the scale, airports and hotel chains are already paying millions more. ”
Earlier this week, the Prime Minister unveiled measures to cut VAT on household electricity bills and impose a £2 bus fare cap, though both policies were met with questions over how they would be funded.