Prime Minister Andy Burnham has announced a 20% cut to business rates for pubs, social clubs and live music venues in England, calling it a “first step” to help the industry. The discount will come into force from April, the government estimates it will save firms around £1,100 next year, and it is the third policy announcement since Burnham entered No 10.
The £100m cost will be funded by a review of tax relief on firms such as vape shops which “do not make a positive contribution to local communities”, the government said.
“Burnham announces 20% business rates cut for English pubs from April, saving firms £1,100, but hotels and restaurants excluded.”
Speaking from a pub in Essex, Burnham said pubs in particular “need to know that the cavalry is coming”. Pubs have already had a 15% cut in April, and this additional 20% will apply from next year. The discount will not apply to the “very largest” live music venues, and details on eligibility will be announced at Chancellor John Healey’s first Budget in the autumn. The cut is expected to benefit almost 32,000 venues.
The Treasury confirmed that nightclubs are not covered by the announcement, which is intended for social clubs such as working men’s clubs. A spokesperson said nightclubs already benefit from permanently lower business rates multipliers and a £4.3bn support package to limit bill rises, alongside capping corporation tax at 25%.
The Night Time Industries Association welcomed the announcement but sought clarity on eligibility. Chief executive Mike Kill said: “We look forward to working constructively with government to ensure nightclubs are fully recognised within these measures.”
UK Hospitality’s chief executive Allen Simpson called the plans “a good start” but added: “Neither hotels nor restaurants have had the help they need. We’ve got to see a proper solution for the most overtaxed sector in the economy at this year’s Budget.”