Andy Burnham’s decision to slash business rates by 20% for England’s pubs, clubs and live music venues has sparked relief in the sector — but fury from other high street firms who say they have been ignored.
The £100m package, announced on Thursday, will benefit almost 32,000 premises. The typical pub is expected to save about £1,100 next year, according to the government. “Finally recognising the plight of the hospitality industry,” said Keith Bott, who runs the Titanic Brewery and nine pubs across the Midlands. He pointed to a mix of employer NI rises, the minimum wage increase, high inflation and the climbing cost of living. “What I really liked … is they are recognising we need to look at a fairer tax system,” he added, while urging ministers to cut duty on draft beer.
“Andy Burnham cuts business rates by 20% for pubs in £100m package, but gyms and cafes are left out.”
But not everyone is cheering. “Is that it?” asked the Conservative leader, Kemi Badenoch. Ruth Dawson, who runs HD3 Fitness Centre in Huddersfield, said her gym has been “left out in the cold” and faces a “damaging” rates bill. “If a pub can get support because it is the ‘heart of the community’, then so should we,” she told the BBC, arguing that community gyms keep elderly residents mobile and connected. Nick Smith, who runs the Ludoquist board game cafe, also questioned the logic of excluding cafes and restaurants.
Burnham said the measure, fully funded partly through a review of relief for businesses such as vape shops, would back “the businesses that people want to see in their communities”. The announcement is part of a wider package that includes capping bus fares at £2 and cutting VAT on electricity bills, though questions remain over how they will be funded.
Hospitality leaders welcomed the move but called it a “small move”, urging the government to extend help to hotels and restaurants and cut VAT. The chancellor, John Healey, said ministers remained committed to overhauling the wider business rates system. For now, the question is whether the rest of the high street will get a seat at the table.