Andy Burnham stood in a pub in Essex on Thursday and declared that the cavalry was coming for Britain's pubs. But as the prime minister announced a 20% cut to business rates for pubs, social clubs and live music venues, other high street businesses were questioning why they had been left behind.
The £100m package, which will save the average pub more than £1,100 from April, marks the third policy blitz since Burnham entered No 10. It will be paid for by reviewing tax relief on firms such as vape shops that “do not make a positive contribution to local communities”, the government said. Yet the discount does not extend to hotels, restaurants or nightclubs – nor to community gyms like HD3 Fitness Centre in Huddersfield.
“Burnham's 20% business rates cut for pubs excludes gyms, cafés, hotels and restaurants, sparking criticism.”
Ruth Dawson, who runs the gym, told the BBC her business faced a “damaging” rates bill and had been “left out in the cold”. “If a pub can get support because it is the 'heart of the community', then so should we,” she said, arguing that keeping elderly residents active was “every bit as vital” given the pressure on the NHS.
Nick Smith, owner of the Ludoquist board game café, also questioned the logic of excluding cafes and restaurants. The Night Time Industries Association welcomed the move but sought clarity on eligibility, with chief executive Mike Kill saying: “We look forward to working constructively with government to ensure nightclubs are fully recognised.”
Keith Bott, who runs Titanic Brewery and nine pubs in the Midlands, welcomed the recognition of hospitality’s plight. He said pubs had been hit by employer National Insurance rises, the minimum wage, high inflation and the cost of living, while paying 35-40% of turnover in tax. He urged the government to go further and cut duty on draft beer.
Burnham called the cut a “first step”. But the Conservative leader, Kemi Badenoch, said his early announcement left her thinking: “Is that it?” UK Hospitality’s chief executive, Allen Simpson, described it as “a good start” but added: “Neither hotels nor restaurants have had the help they need.”
The Treasury said nightclubs already benefited from lower multipliers and the £4.3bn support package. Details of which venues qualify will be set out in Chancellor John Healey’s first Budget in the autumn. For now, as one industry boss put it, the enthusiasm for the sector appears to have “survived his trip down the M1” – but whether it survives the backlash from those left out remains to be seen.