Pubs, social clubs, and live music venues in England will get a 20% cut in their business rates from April, new prime minister Andy Burnham has announced.
Andy Burnham in Bath, at the launch of £2 bus fares for 2027, earlier this week.
Photograph: Lauren Hurley/No 10 Downing Street
The measure is designed to support “the backbone of local high streets” and could save venues some £1,100 next year.
It will be paid for by reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops. The government will also crack down on businesses that sell through online marketplaces but do not comply with their tax obligations.
“For too long, governments have stood by while cherished venues have disappeared from our local high streets,” said Burnham. “So today I am changing that.
“This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets — the beating heart of our communities — and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.”
Andy Slee, chief executive of the Society of Independent Brewers and Associates (SIBA), said: “The new prime minister promised he would deliver much-needed support for our cherished community pubs on business rates, and he has acted quickly to do so. A 20% cut to business rates will make a real difference to the bottom lines.
“Our pubs and breweries contribute around 40% of turnover as taxation, compared to online global giants that only pay a fraction of that to the Treasury. Rebalancing this tax burden on business rates away from businesses that contribute to the community and support jobs in our towns and villages will make a real difference to every postcode.
“We hope this is the first step in wider support and that the prime minister also looks to reduce tax on draught beer sold in pubs and ensuring that small breweries can sell their beers to pubs across the UK.”
Emma McClarkin, chief executive of the British Beer and Pub Association, said: “For years and years, pubs have paid a disproportionately higher rate, which has ground down their ability to keep the doors open, so we’re delighted that, after working with Andy Burnham’s team prior to his election as Labour party leader, he has swiftly acted on our concerns and provided new backing to our nation’s pubs as he promised.
“The local has and always will be more than just a place to get a pint; it creates jobs, it’s our nation’s living room, it’s the anchor of the high street, so this sorely needed discount will be celebrated by pubs up and down the country. We now look forward to working with government to deliver permanent business rates reform so we can keep the pub in its rightful place; at the heart of our communities.”
Saxon Moseley, partner and head of leisure and hospitality at leading audit, tax, and consulting firm RSM UK, said: “A shot of relief for pubs, clubs, and live venues as the government announce a meaningful cut to business rates. Pubs are at the heart of our communities, and this social value has been acknowledged with today’s planned measures to attempt to stem the flow of financial distress.
“However, a thriving high street is more than pubs, clubs, and live venues, and excluding restaurants and hotels creates confusion around eligibility and further complexity and nuance in the tax system.
“There is no doubt that this will look to offset some of the significant rate burden in the short-term, but what is needed is widespread rate reforms that instils fairness across the hospitality industry to make it cheaper for businesses to operate, making the high street a more attractive place to invest.”
