- Andy Burnham has announced a £100m rates giveaway for pubs, clubs, and live music venues as part of a broader agenda to support the high street.
- Pub owners have reacted to the announcement, with Dan Smith stating, "it’s a small snippet" of what is needed.
- O’Leary expressed skepticism, saying the benefit of the policy is "a fart in the wind compared to what is needed."
- The policy is expected to provide a saving of about £1,000 for pubs, aligning with government estimates.
Andy Burnham's recent announcement of a £100 million business rate cut for pubs and clubs has sparked mixed reactions among owners, who argue that while it shows intent, it falls short of addressing the broader financial challenges they face.1
Dan Smith, owner of the Red Lion pub in Derbyshire, remarked, “I’m not going to knock it... But it’s a small snippet,” highlighting the limited impact of the policy. Smith, who previously paid no business rates due to rural relief, now faces an annual bill of approximately £680, which fluctuates due to various policy changes.2
The new policy is expected to save pubs around £1,000, aligning with government estimates. However, industry experts like O’Leary have criticized the measure, stating, “The speed of this policy decision is a positive sign, but the benefit is a fart in the wind compared to what is needed.” The high operational costs, including rising alcohol duties and staffing expenses, continue to burden pub owners.34
As the hospitality sector grapples with these challenges, the effectiveness of Burnham's initiative remains to be seen, with many calling for more substantial support to ensure the survival of local pubs and clubs.
“Dan Smith, owner of the Red Lion pub, says business rates account for 16p of a pie and a pint, with the policy saving about £1,000. Separately, record heat and World Cup spending boosted June retail sales by 1%, beating forecasts, while the FTSE 100 edged higher on consumer confidence.”
The Guardian
BBC
