- Andy Burnham announces a 20% cut in business rates for pubs, clubs, and live music venues across England, effective from April next year.
- The cut is expected to save a typical pub an estimated £1,100 in tax next year.
- This 20% cut will cost around £100 million annually, funded by reviewing tax reliefs for businesses like vape shops.
- The new policy is part of Burnham's commitment to support local businesses and communities.
Prime Minister Andy Burnham has announced a 20% cut in business rates for pubs, clubs, and live music venues in England, effective from April next year. This initiative aims to support nearly 32,000 businesses and is expected to save a typical pub around £1,100 in tax next year.123456
The £100 million cost of this tax cut will be funded by reviewing tax reliefs for businesses that do not contribute positively to local communities, particularly targeting vape shops. Burnham emphasized the importance of supporting local venues, stating, "For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that."
The announcement marks Burnham's third policy initiative in as many days, reflecting his commitment to revitalizing the night-time economy. The Night Time Industries Association welcomed the move, highlighting its recognition of the vital economic and cultural contributions of the night-time economy. However, some industry leaders, like Kate Nicholls of UK Hospitality, noted that while the support is welcome, it overlooks other essential sectors like restaurants and cafes.
The government will also explore raising taxes from businesses that sell through online marketplaces but do not comply with tax obligations, ensuring a fairer competitive landscape for compliant businesses. Details regarding eligibility for the tax cut will be clarified in the upcoming budget, particularly concerning the largest live music venues.
“The typical pub is expected to save £1,100 next year, with nearly 32,000 venues qualifying; this is Burnham's third major policy announcement in as many days. Industry groups UK Hospitality and the NTIA welcomed the cut, though the largest music venues are excluded.”
The Guardian
