Burnham delivers for hospitality as PM slashes business rates bills

Prime Minister Andy Burnham has announced a 20% cut in business rates for pubs, social clubs and live music venues across England from April next year, in a move the Government says will help revitalise local high streets and support community businesses.

The measure is expected to benefit nearly 32,000 venues, with the typical pub set to save an estimated £1,100 during the next financial year. Ministers say the changes will provide greater certainty for businesses looking to invest, grow and create jobs while helping to strengthen town centres across the country.

The announcement forms part of the Government’s wider strategy to build what it describes as “an economy that works for every postcode” by reducing costs for businesses and supporting local communities.

Alongside the business rates cut, the Government confirmed it will review reliefs currently available to businesses it says do not make a positive contribution to local communities, including vape shops. Revenue generated from those reforms will be used to improve the wider business rates system.

The Government also plans to crack down on businesses selling through online marketplaces that fail to meet their tax obligations. Ministers say they are consulting on proposals that would make online marketplaces more responsible for preventing non-compliant sellers from avoiding tax, helping to create a level playing field for businesses that comply with the rules.

The latest measures follow a series of cost-of-living initiatives introduced by the Government, including electricity bill VAT relief and the £2 bus fare cap, as ministers seek to reduce costs for working people and communities.

Announcing the changes, 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.”

The Government says the package is designed to reverse the decline of traditional high streets, where many pubs, clubs and entertainment venues have closed in recent years, often replaced by empty premises.

Chancellor of the Exchequer John Healey said the venues play a vital role in communities and deserve continued support.

He 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. This is just one step of the Government’s plans to back our communities and high streets and we will return to our commitment to reform the wider business rates system, including Small Business Rates Relief, at the Budget.”

Ministers say the reforms are fully funded and represent the first stage of wider changes to business rates, with further details expected at the Budget later this year. The Government has pledged to continue reforming the system to better support small businesses while encouraging investment in local communities.

The business rates reduction will come into effect from April next year, with thousands of hospitality and entertainment venues expected to benefit from lower costs as the Government looks to boost growth and breathe new life into high streets across England.