West Midlands Mayor Richard Parker has described Prime Minister Andy Burnham's decision to cut business rates bills for certain venues as a "small but important step". The Prime Minister announced today that pubs, clubs and live music venues in England will receive a 20 per cent reduction in business rates from April.
Burnham said that previous governments had "stood by while cherished venues disappeared" and asserted that his administration would "back the businesses that people want to see in their communities". This year has seen numerous restaurants and pubs in Birmingham and the surrounding area close permanently amid challenging conditions for the hospitality sector.
Prime Minister's Commitment to High Streets
"I said I would protect pubs and local high streets – the beating heart of our communities – and that's what we will do," the Prime Minister stated. "What we're announcing today is just the start as we work to bring back hope across the country."
Speaking to the Local Democracy Reporting Service, Mayor Parker welcomed the move but acknowledged that more needs to be done to support hospitality businesses. "I'm very pleased with the announcement the Prime Minister has made," he said. "He's only been in office four days and he's already demonstrated he wants to make a tangible difference to the cost of living."
A Small but Important Step
"So today's announcement was a helpful one – it will relieve businesses such as clubs and music venues of some of the costs that they are incurring," Parker continued. "I know it's a small step but it's an important one – I think it's a demonstration of the Prime Minister's intent."
When asked about critics who argue the cut does not go far enough, including chef and publican Tom Kerridge who told the BBC the savings "doesn't really make a difference", Parker responded: "It's a first step. The Prime Minister has been in office four days. He's sought to make a really quick demonstration of what his intent is and where his focus will be – it's lifting some of that burden and cost off the shoulders of our businesses and give them some breathing space."
Further Relief Expected
Parker emphasised the importance of the hospitality sector, noting that there are over 100,000 jobs in the region in this sector and that many have been lost. "I would just say to the sector that the Prime Minister has set out his areas of priority and focus and I would expect there would be further announcements during the autumn statement and in the early part of the New Year that can give businesses in the sector further relief from some of the cost increases," he said.
He also indicated he would raise concerns about national insurance increases when he speaks to the Prime Minister later this week. "I think this sector was one of those impacted very significantly," Parker added. "And I say that not just because I want these businesses to survive and be sustainable but it's also a great way into work for many of our young people."
Night-Time Economy Ambassador Welcomes Move
Lyle Bignon, the NTIA's Night Time Economy Ambassador for Birmingham, also welcomed the announcement. "The government is finally listening to the UK's Night Time Economy (NTE)," he said. "Today's announcement that business rates are to be slashed for pubs, clubs, and live music venues is a welcome shot in the arm for our sectors. The policy is a step in the right direction in recognising the value of hospitality, music, and the NTE but also in acknowledging the unprecedented challenges that venues have faced in recent years. Further interventions are required to secure the long term health of NTE."
Bignon added that combined with Mayor Parker's call for a dedicated national NTE Minister, "we are now seeing signs of confidence in our role as economic driver from our political leaders – which are long overdue."
Mayor's Call for Night-Time Economy Minister
Earlier this month, Parker called on the Prime Minister to appoint a dedicated Minister for the Night-Time Economy, stating: "Andy Burnham understands the night-time economy. He championed it in Greater Manchester with a Night-Time Economy Commissioner – so he knows what it means to a place and the people who live there. He's previously called for support and relief for the industry, so he gets it. Yesterday he gave AI a minister. I'm asking him to do the same for the night-time economy."
Parker highlighted that one in four jobs across the region are in the night-time economy, describing it as "the cultural life blood of our places" that provides "somewhere to go, something to do, places to meet." He concluded: "The industry has taken a battering from Covid, rising costs and business rates. They need someone in government whose job is to fight their corner."
