Andy Burnham’s decision to slash business rates by 20% for pubs, social clubs and live music venues in England has been met with cheers from landlords – but a chorus of complaints from other High Street businesses who say they have been “left out in the cold”.
The cut, which comes on top of emergency rates relief rolled out in January, will save the average pub more than £1,000, according to tax experts. Industry body UK Hospitality said it showed Burnham’s enthusiasm for the sector “survived his trip down the M1”.
“Andy Burnham's 20% business rates cut for pubs saves £1,000 per venue but excludes gyms and cafes, sparking complaints of unfairness.”
Keith Bott, who runs the Titanic Brewery and nine pubs across the Midlands, welcomed the government “finally recognising the plight of the hospitality industry and trying to help”. But he warned that pubs face far greater pressures: a mix of employer National Insurance increases, the rising minimum wage, high inflation and the climbing cost of living. The sector is “heavily taxed”, with around 35-40% of turnover going to the Treasury, he told the BBC. “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 said. He argued that online retailers operating out of warehouses pay a “ridiculously low” amount of business rates in comparison, and urged the government to cut duty on draft beer.
But while pubs celebrate, other community-focused businesses are asking why they have been excluded. Ruth Dawson, who runs HD3 Fitness Centre in Huddersfield, said her gym “does exactly the kind of work the government says it wants to support” but has been “left out in the cold”. She faces a “damaging” business rates bill, which she calls “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,” Dawson said. “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.” She urged the government to extend support to community leisure centres and fitness facilities.
Nick Smith, who runs the Ludoquist board game cafe, also questioned the logic of excluding cafes and restaurants. The City A.M. newspaper noted that the relief, while welcome, is “dwarfed by other costs” burdening the sector. With demands for a fairer tax system and cries of unfairness from excluded businesses, Burnham’s package may prove a temporary salve rather than a lasting cure for the High Street’s woes.