Andy Burnham has announced plans to slash business rates for pubs, clubs, and live music venues across England, as he continues his policy blitz to cut costs for the public in his first week as prime minister.
The new prime minister announced venues will benefit from a 20 per cent cut in business rates from April next year as he seeks to “bring hope back across the country”.
No 10 said the overhaul will be funded by reviewing reliefs for businesses that “do not make a positive contribution to local communities” such as vape shops and by cracking down on online marketplaces that do not comply with tax obligations.
Though the very largest live music venues will not be eligible, the discount will apply to nearly 32,000 hospitality businesses and is expected to save a typical pub some £1,100 annually.
“This government will back the businesses that people want to see in their communities,” Mr Burnham said.
“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.”
The government will look to set out further reform to the wider business rates system, including small business rates relief, at the Budget.
Chief secretary to the treasury Emma Reynolds said on Thursday the government will “look in the round” at further measures to help other businesses such as restaurants that are also under economic pressure.
It is part of a bid from Mr Burnham to focus on cutting costs for the public and communities since entering Downing Street on Monday, which has also seen him announce plans to remove VAT from electricity bills and reinstate a £2 cap on single bus fares across England.
The 20 per cent cut comes on top of the 15 per cent relief announced in January.
Chancellor John Healey said: “Pubs, clubs and live music venues are at the heart of communities across the UK.”
He added: “We are determined to bring hope back, give businesses the support they need and generate growth in every postcode.”
TV chef Tom Kerridge had previously led a nationwide campaign calling for hospitality VAT to be cut to 10 per cent, with the aim of securing one million signatures.
Under the banner “VAT’s the Problem”, supporters argued the move would bring Britain closer in line with much of Europe, where reduced VAT rates for hospitality are common.
The announcement comes ahead of Mr Burnham’s trip to Scotland to meet with first minister John Swinney and attend the Commonwealth Games.
It’s the first in-person meeting between the Scottish and UK leaders since Mr Burnham became prime minister on Monday.
He is set to arrive in Glasgow on Thursday to watch the opening ceremony for the 2026 Commonwealth Games, where he will be joined by the King and Queen. He will also meet the first minister of Wales, Rhun ap Iorwerth.
The Government has said Mr Burnham would set out how he plans to work “collaboratively” with devolved governments “based on a genuine partnership”.
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