The £100m commitment will be financed by clamping down on businesses such as vape shops
Andy Burnham has announced a 20 per cent reduction to business rates for pubs, clubs and music venues. The £100m commitment will be financed by clamping down on businesses, such as vape shops and tax-avoidant online retailers, which “do not make a positive contribution to local communities,” the government said, reports BritPanorama.
This measure forms part of Burnham’s promise to provide Brits with “breathing space” on the cost of living, though it marks the first policy specifically targeted at businesses. Pubs and hospitality establishments have been lobbying for a reduction to business rates after their tax bills were pushed skyward by Rachel Reeves’ Autumn Budget last year.
The Prime Minister stated that this policy demonstrates his government’s commitment to “back the businesses that people want to see in their communities” rather than standing idly by while “cherished venues have disappeared from our local high streets.” The reduction to business rates for pubs had been a central promise during Burnham’s campaign throughout the Makerfield by-election.
During that campaign, Burnham had criticized Keir Starmer for “undervaluing” pubs, asserting that Labour had “got this wrong in government.” Chancellor John Healey emphasized the importance of pubs, clubs, and live music venues, stating: “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 received positive feedback from the British Beer and Pub Association (BBPA) during the Makerfield campaign. Its chief executive, Emma McClarkin, remarked that pubs “continue to pay a disproportionately higher rate which grinds down their ability to keep the doors open,” suggesting that a further 20 per cent cut would significantly benefit local businesses and high streets.
Pressure on the government to reform the business rates system isn’t limited to the hospitality sector. High street retailers have argued that the current tax structure disadvantages them compared to their online counterparts. A coalition of retail trade bodies has called on Burnham to implement a 37 per cent reduction in business rates for all high street businesses by introducing a two per cent levy on online sales.
Earlier in the week, the Prime Minister announced measures to reduce VAT on household electricity bills and introduce a £2 bus fare cap, though both policies faced scrutiny over their financing.
As the government seeks to balance support for local businesses with budgetary constraints, the outcome of these measures will likely influence future economic policies in the hospitality and retail sectors.
