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PoliticsUK PM Burnham announces 20% business rates cut for pubs, clubs, music venues
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UK Prime Minister Andy Burnham has unveiled a 20% cut to business rates for pubs, clubs, and music venues, a £100 million commitment funded by cracking down on vape shops and tax-avoidant online sellers deemed not to make positive contributions to local communities. The policy, a key pledge during Burnham's Makerfield by-election campaign, aims to give Brits 'breathing space' on the cost of living and is the first business-focused measure from his government. It follows industry outcry over tax hikes in Rachel Reeves' Autumn Budget. Chancellor John Healey welcomed the move, stating venues are 'at the heart of communities.' The British Beer and Pub Association praised the cut but called for broader reform. The announcement comes alongside other cost-of-living measures, including VAT cuts on electricity bills and a £2 bus fare cap, though funding questions remain.
Source report
Andy Burnham has unveiled a 20 per cent cut to business rates for pubs, clubs and music venues.
The £100 million commitment will be funded by cracking down on businesses — such as vape shops and tax-avoidant online sellers — that "do not make a positive contribution to local communities," the government said.
The measure forms part of Burnham's pledge to give Brits "breathing space" on the cost of living, though this is the first policy to be aimed specifically at businesses.
Background
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 in the Makerfield by-election. During the campaign, Burnham accused Keir Starmer of "undervaluing" pubs, adding that Labour had "got this wrong in government".
Chancellor's Statement
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."
Industry Reaction
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.
Broader Context
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.
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.
Read more: [Warehouse tax could threaten high street businesses, Burnham warned]
Source
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Andy Burnham Announces 20% Business Rates Cut for Pubs, Clubs, and Music Venues