New Prime Minister Andy Burnham has announced a 20% cut to business rates for pubs, clubs, and live music venues, saving the typical pub an estimated £1,100 next year. The measure will benefit nearly 32,000 premises across the UK, supporting the backbone of local high streets, according to a government press release.
Details of the Business Rate Cut
The cut forms part of a broader policy blitz since Burnham succeeded Sir Keir Starmer on Monday. Other measures include a new £2 bus fare cap and VAT cuts on energy bills. The business rate reduction specifically targets pubs, clubs, and live music venues, which have faced significant financial pressures in recent years.
The government also plans to review reliefs provided to anti-social businesses, such as vape shops, to ensure support is directed appropriately.
Reactions from Pub Owners
Colm O’Leary, director at Packed House, which helps pub owners build profitable businesses, said: “The speed of this policy decision is a positive sign, but the benefit is a fart in the wind compared to what is needed.”
Dan Smith, owner of The Red Lion in Hollington, Derbyshire, noted the pub’s popularity for pies, selling about 300 a week and using six 25kg sacks of potatoes from a local farmer. A local brewery produces their own beer, Pie & Glory, but Bass remains the most popular. Smith told the Guardian: “They’ve made it 10 times more complicated than it needed to be. I’m not going to knock it [the business rate cut], it’s showing willing from Mr Burnham. But it’s a small snippet.”
Impact on Local High Streets
The government emphasizes that these measures will bolster local high streets by supporting traditional businesses while reviewing reliefs for those that may contribute to anti-social behavior. The typical pub saving of £1,100 is expected to provide some relief, though industry voices suggest more substantial support may be required.
