Advertisement
UK

Pubs get business rates relief but other high street firms 'left out in the cold'

Andy Burnham cuts business rates for pubs by 20%, saving average pub over £1,000, but other businesses criticise exclusion.

UK

Pubs get business rates relief but other high street firms 'left out in the cold'

Pubs, social clubs and live music venues in England are set to receive a 20% discount on business rates — a move that will save the average pub more than £1,000, according to tax experts. The relief, announced by Andy Burnham, comes on top of emergency business rates relief rolled out in January, prompting cheers from industry bosses. UK Hospitality said the announcement showed Burnham's enthusiasm for the sector "survived his trip down the M1".

But the cheer from pubs was not shared by other high street businesses. Ruth Dawson, who runs HD3 Fitness Centre in Huddersfield, told the BBC she had been "left out in the cold". Her gym, she said, "does exactly the kind of work the government says it wants to support", yet faces a "damaging" business rates bill that is "one of the biggest threats to our ability to keep operating". "If a pub can get support because it is the 'heart of the community', then so should we," she added. "A community gym that keeps elderly residents mobile, active and connected is every bit as vital to a High Street as a pub or a club — arguably more so, given the pressure on the NHS and social care from an ageing population."

Andy Burnham cuts business rates for pubs by 20%, saving average pub over £1,000, but other businesses criticise exclusion.

Nick Smith, who runs the Ludoquist board game café, also questioned the logic of excluding cafes and restaurants. Keith Bott, who runs the Titanic Brewery and nine pubs across the Midlands, welcomed the relief but acknowledged the sector's deeper troubles. He said pubs had been hit by a mix of employer National Insurance increases, the rising minimum wage, high inflation and the climbing cost of living, describing the sector as "heavily taxed" with around 35-40% of turnover going to the Treasury. "What I really liked in this announcement is they are recognising we need to look at a fairer tax system so we can all contribute to society," Bott told the BBC, adding that online retailers operating out of warehouses pay a "ridiculously low" amount of business rates. He urged the government to go further by cutting the duty on draft beer to target drinks sold in pubs.

Advertisement

The relief, while welcomed by pubs, does little to address the wider cost pressures facing the hospitality industry. Dawson called for the support to be extended to community leisure centres and fitness facilities, asking: "Why are we left out?"

Advertisement
Advertisement