Burnham to cut pub business rates by 20 per cent
Andy Burnham has unveiled a 20 per cent cut to business rates for pubs, clubs and music venues.
The £100m commitment will be funded by cracking down on businesses, like vape shops and tax-avoidant online sellers, which “not not make a positive contribution to local communities,” the government said.
The measure comes as part of Burnham’s pledge to give Brits “breathing space” on the cost of living, though this is the first policy to be aimed at businesses.
Pubs and hospitality venues have been campaigning for a cut to business rates after their tax bills were sent soaring by Rachel Reeves’ Autumn Budget last year.
The Prime Minister said this policy is proof that his government will “back the businesses that people want to see in their communities” rather than standing by while “cherished venues have disappeared from our local high streets”.
The cut to business rates for pubs had been a key pledge during Burnham’s campaign during the Makerfield by-election.
Funded by £100m crackdown on vape shops
During the campaign pledge, Burnham had accused Keir Starmer of “undervaluing” pubs. Labour had “got this wrong in government,” he said.
Chancellor John Healey said: “Pubs, clubs and live music venues are at the heart of communities across the UK.
“They bring people together, support local jobs and help keep high streets and town centres busy — which is why we will back them all the way.”
The pledge was welcomed by the British Beer and Pub Association (BBPA) during the Makerfield campaign. Its chief executive, Emma McClarkin, said pubs “continue to pay a disproportionately higher rate which grinds down their ability to keep the doors open”.
“A further 20 per cent would be a real boost for the local, and raising the threshold so many smaller pubs get taken out of paying rates would make a real difference to high streets and livelihoods,” she had said.
‘Not real reform’
Calls for the government to reform the business rates system have come from beyond the hospitality sector, with high street retailers saying the tax disadvantages them in comparison to online sellers.
A group of retail trade bodies has called on Burnham to cut business rates for all high street businesses by 37 per cent by imposing a two per cent levy on online sales.
Ros Morgan, chair of the Real Rates Reform Alliance, called on the Prime Minister to use the Budget to set out “real reform” to business rates which benefits all brick and mortar firms.
“Targeted support for a small number of sectors is not a substitute for fundamental reform. Every business that invests in physical premises, from retailers and manufacturers to offices, hotels, theatres and leisure businesses, is being held back by an outdated property tax that penalises investment, suppresses growth and puts jobs at risk,” she said.
Earlier this week, the Prime Minister unveiled measures to cut VAT on household electricity bills and impose a £2 bus fare cap, though both policies were met with questions over how they would be funded.