Prime Minister Andy Burnham has announced a 20% cut to business rates for pubs, social clubs and live music venues across England from next April, calling it a “first step” to help an industry still reeling from economic pressures. Speaking from a pub in Essex, Burnham said pubs “need to know that the cavalry is coming”, as he unveiled his third policy move since entering No 10.
The government estimates the plan will save firms around £1,100 next year, at a cost of £100m, which will be funded by a review of tax relief on vape shops that “do not make a positive contribution to local communities”, according to the government. Pubs have already had two rounds of relief – a 15% cut in April and now a further 20% coming into force next year – but the discount will not apply to the “very largest” live music venues.
“PM Andy Burnham announces 20% business rates cut for English pubs, clubs and music venues from April, funded by vape shop tax relief review.”
While some hospitality firms welcomed the move, others were left questioning why hotels and restaurants were excluded. UK Hospitality’s chief executive Allen Simpson called it “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.”
Nightclubs are also not covered by the announcement. A Treasury spokesperson said nightclubs “play an important role in local communities and high streets” and already benefit from permanently lower business rates multipliers and a £4.3bn support package. 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.”
The cut is expected to benefit almost 32,000 venues, with details about eligibility to be announced at Chancellor John Healey’s first Budget in the autumn. The BBC understands that definitions of eligible venues will be similar to existing guidance used by local authorities, which currently leaves them to decide where eligibility is unclear – but explicitly excludes nightclubs. For now, the cavalry may be coming for pubs, but for hotels, restaurants and nightclubs, the wait continues.