New 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. Speaking from a pub in Essex, Burnham said pubs “need to know that the cavalry is coming”. The cut, which will take effect from April, is expected to save firms around £1,100 next year and benefit almost 32,000 venues. Funded by a review of tax relief on firms such as vape shops that “do not make a positive contribution to local communities”, the plan comes at a cost of £100m.
But the relief has drawn a mixed response. Hotels and restaurants are not included, and UK Hospitality chief executive Allen Simpson said Burnham’s plans are “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.” The Treasury said nightclubs are not covered by the announcement, though a spokesperson insisted they already benefit from permanently lower business rates multipliers and a £4.3bn support package.
“Burnham cuts pub business rates by 20%, but Wetherspoon boss Tim Martin calls for more.”
Tim Martin, chairman of JD Wetherspoon, urged the Prime Minister to go further, calling the cut an “implicit recognition that the hospitality sector is over taxed”. The Night Time Industries Association welcomed the announcement but chief executive Mike Kill said it was seeking clarity on eligibility, adding: “We look forward to working constructively with government to ensure nightclubs are fully recognised within these measures.”
Chancellor John Healey is expected to announce details of which businesses qualify in his first Budget this autumn. The cut will not apply to the “very largest” live music venues, and definitions are expected to mirror existing guidance that already excludes nightclubs. The BBC understands the government is continuing to examine the wider business rates system and how to support high streets more broadly.