Andy Burnham’s government has announced a 20% cut in business rates for pubs, clubs, and music venues, a move officials say will save a typical pub £1,100 a year when introduced next April. The policy is expected to benefit 32,000 businesses across the UK.
New PM pledges to boost every postcode
The announcement came on Thursday morning (July 23) as the new Prime Minister outlined his ambition to “build an economy that works for every postcode.” Burnham said the cut was a direct response to the decline of cherished venues on local high streets.
“For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that,” Burnham stated. “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.”
Part of wider cost-of-living package
The business rates cut follows a series of measures aimed at easing the cost-of-living crisis for voters. Earlier this month, the government capped adult single bus fares at £2 per journey and removed 5% VAT on electricity bills in October. Like those policies, civil servants say the business rates cut is “fully funded.”
The energy bill tax cut was paid for by cancelling digital ID cards, but the funding mechanism for the business rate scheme, expected to cost £100 million, remains unclear. The government said it will partly be paid for by reviewing business rate tax relief for “businesses that do not make a positive contribution to local communities, such as vape shops.” A crackdown is also planned on firms selling online but failing to pay the correct tax.
Review of anti-social businesses
The government has promised a review of tax breaks given to what it calls “anti-social businesses,” including vape shops. It says it plans to “make online marketplaces more responsible for preventing non-compliant sellers from avoiding their tax obligations,” but has yet to reveal final details for the potential law change.
