Key facts
- UK Prime Minister Andy Burnham will implement a 20% cut to business rates for pubs, social clubs, and live music venues.
- The business rate reduction will take effect from April next year.
- The initiative is valued at approximately £100 million per year.
- Funding for the cuts is expected to be sourced from higher levies on large warehouses and owners of empty high street properties.
- The threshold for independent hospitality, leisure, and retail companies to pay business rates will be raised.
UK Prime Minister Andy Burnham is set to announce a significant cut to business rates for pubs, social clubs, and live music venues across England, effective from April of next year. This policy, valued at approximately £100 million annually, aims to support these establishments, which Burnham describes as the "beating heart of our communities."
The proposed 20% reduction in business rates for these venues is part of a broader initiative to alleviate soaring costs for small businesses. Burnham also plans to raise the threshold at which independent hospitality, leisure, and retail companies begin paying business rates, a move intended to provide further financial relief. These measures are intended to help family-owned businesses thrive.
Funding for the business rate cuts is expected to be generated by increasing levies on large, out-of-town warehouses used by online retailers like Amazon, and by targeting owners of empty high street properties. This approach seeks to rebalance the tax burden and support physical businesses.
Burnham's proposals go beyond a previous Treasury plan for a 15% cut to pub business rates. The initiative also represents a departure from some of the policies enacted under Keir Starmer's leadership, with Burnham acknowledging that the Labour party may have "got it wrong" regarding small businesses.
Other cost-of-living measures announced by Burnham include the removal of VAT from electricity bills and a £2 cap on bus fares. These policies are part of what is described as a "policy blitz" at the beginning of his premiership.