Prime Minister Andy Burnham has announced a 20 per cent reduction in business rates for pubs, clubs and live music venues across England, fulfilling a key campaign promise from the Makerfield by-election. The £100 million commitment will be financed by cracking down on businesses such as vape shops and tax-avoidant online retailers that 'do not make a positive contribution to local communities,' the government said.
Policy details and funding
The measure forms part of Burnham's broader pledge to provide Britons with 'breathing space' on the cost of living, though this marks the first policy specifically targeted at businesses. Pubs and hospitality establishments have long lobbied for a rates reduction after their tax bills surged following Rachel Reeves' Autumn Budget last year.
The Prime Minister stated that the policy demonstrates his government will '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,' as reported by City AM.
Political context and campaign promise
The reduction had been a central promise during Burnham's campaign in the Makerfield by-election, where he criticised Keir Starmer for 'undervaluing' pubs, saying Labour had 'got this wrong in government.' Chancellor John Healey welcomed the announcement, saying: '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 warmly received by the British Beer and Pub Association (BBPA) during the campaign. Chief executive Emma McClarkin said pubs 'continue to pay a disproportionately higher rate which grinds down their ability to keep the doors open.' She added: '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.'
Broader business rates reform pressure
Pressure on the government to overhaul the business rates system extends well beyond hospitality, with high street retailers arguing the tax puts them at a significant disadvantage compared to online counterparts. A coalition of retail trade bodies has urged Burnham to slash business rates for all high street businesses by 37 per cent, funded by a two per cent levy on online sales.
Earlier this week, Burnham announced measures to reduce VAT on household electricity bills and introduce a £2 bus fare cap, though both policies faced scrutiny over how they would be financed.
