Andy Burnham’s decision to slash business rates for pubs, social clubs and live music venues has been met with relief by industry bosses – but left other High Street businesses questioning why they have been overlooked.
The 20% discount, which comes on top of emergency relief rolled out in January, will save the average pub more than £1,000, according to tax experts. Keith Bott, who runs the Titanic Brewery and nine pubs across the Midlands, welcomed the move, saying the government was “finally recognising the plight of the hospitality industry and trying to help”.
“Burnham cuts pub business rates 20%, saving average pub over £1,000; gyms and cafes cry foul”
Bott pointed to the pressures piling up on pubs: employer National Insurance increases, the rising minimum wage, high inflation and the climbing cost of living. The sector is “heavily taxed”, he told the BBC, with around 35-40% of turnover going to the Treasury. He contrasted that with online retailers operating out of warehouses, which pay a “ridiculously low” amount in business rates. “We need to make the system fair,” Bott said, urging the government to go further by cutting duty on draft beer.
But not everyone is celebrating. Ruth Dawson, who runs the HD3 Fitness Centre in Huddersfield, said her gym has been “left out in the cold”. Describing the business rates bill as “damaging” and “one of the biggest threats to our ability to keep operating”, she argued that community gyms are just as vital as pubs. “If a pub can get support because it is the ‘heart of the community’, then so should we,” she told the BBC. “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.”
Nick Smith, who runs the Ludoquist board game cafe, also questioned the logic of excluding cafes and restaurants from the relief. Industry body UK Hospitality praised Burnham’s enthusiasm for the sector, suggesting it “survived his trip down the M1”.
The question now is whether the government will listen to the growing chorus of voices demanding a wider package – or leave other High Street staples to fend for themselves.