Business rates for pubs, clubs and live music venues cut by 20% in new cost

Business rates will be slashed for pubs, clubs and live music venues across England from April next year, Downing Street has announced. In his third major new policy since becoming PM on Monday, Andy Burnham said the 20% cut would protect "cherished venues" which have been closing at an alarming rate. He accused his predecessors of not doing enough while hundreds of pubs disappear each year. No10 says the new business rate cuts will benefit nearly 32,000 venues - saving the typical pub an estimated £1,100 in the next financial year. Mr Burnham and Chancellor John Healey said the £100million support package is fully funded, hinting there could be hikes for businesses they say do not benefit communities, such as vape shops. The government also said firms that sell through online marketplaces but do not pay their fair share of tax will face a crackdown. The move also marks a victory for the Mirror's Your Pub Needs You campaign, which has long championed the importance of the nation's watering holes. Mr Burnham said: "For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that. "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." On a visit to the Hare pub in Harlow, Essex, the PM said: "This is a first step today, but it's an important step. I made this commitment in the Makerfield by-election because we're losing pubs. Pubs need to know that the cavalry is coming. "You know, this is to me our heritage. It's working class culture. Once pubs are gone, they don't come back. So we've just got to signal what support when we can. That's why I've made this early announcement. This is a significant cut to the business rates that pubs and other venues pay. "It could make the difference for a number of venues that are struggling, and it was right to confirm it quickly because, as I say, so much good happens bringing communities together, and when these places have gone they don't come back, and we can't afford to lose any more." The British Beer and Pub Association (BBPA) estimates that two pubs are closing each day - with an estimated 2,400 job losses in the first three months of this year. It said it was delighted with the new measure. Under plans unveiled on Thursday morning, the rate cut will not apply to the very largest live music venues. There will be more details of which businesses are eligible to be announced at the autumn Budget, No10 said. Mr Healey said: "Pubs, clubs and live music venues are at the heart of communities across the UK. They help make a place what we love. They bring people together, support local jobs and help keep high streets and town centres busy — which is why we will back them all the way. "We are determined to bring hope back, give businesses the support they need and generate growth in every postcode." Emma Reynolds, chief secretary to the Treasury, told Sky News: "As the Prime Minister set out, it's really important that we breathe life back into our high streets, but also our pubs, which are vital community assets and bring people together and the beating heart of our communities." Pressed on how it would be funded, she said: "This is fully funded, and it will be funded in a couple of major ways. Firstly, by looking at business rate reliefs on businesses that cause social harm, such as vape shops, and secondly, by cracking down on those online businesses who are not paying VAT. "We're doing a consultation on that at the moment, but we really need to make sure that those online businesses aren't getting through the VAT system." Emma McClarkin, chief executive of the British Beer and Pub Association, said: “For years and years, pubs have paid a disproportionately higher rate which has ground down their ability to keep the doors open, so we're delighted that after working with Andy Burnham’s team prior to his election as Labour Party leader, he has swiftly acted on our concerns and provided new backing to our nation’s pubs as he promised. "The local has and always will be more than just a place to get a pint; it creates jobs, it's our nation's living room, it's the anchor of the high street, so this sorely needed discount will be celebrated by pubs up and down the country. "We now look forward to working with Government to deliver permanent business rates reform so we can keep the pub in its rightful place; at the heart of our communities." UK Music Chief Executive Tom Kiehl said: "We welcome this much needed support for live music venues. These spaces are essential to the future of our world-leading music industry and serve as vital cultural hubs for communities right across the UK. We have lost too many venues to soaring business rates and these cuts offer a crucial lifeline to those still struggling to make ends meet." Pub bosses lined-up to hail the rate cut. Chris Jowsey, chief executive of Admiral Taverns, called it “a positive first step which recognises the vital role pubs play at the heart of communities across the country.” Andy Spencer, of Punch, said: “At a time when our sector continues to face significant cost pressures, we hope this marks the start of a broader package of measures that recognise hospitality as a key growth sector for the UK economy.” Allen Simpson, chief executive of UKHospitality, said: “The Prime Minister is right to say this should be just the start. Restaurants are struggling just as much as pubs, while hotels are due to see their business rates bills increase by an average of 110%, the highest in the sector." Shop bosses pointed out there was no extra help at this stage for other high street businesses. Andrew Goodacre, chief executive of the British Independent Retailers Association, said: “Once again pubs, clubs and music venues are being given special treatment on business rates. This follows the discount they were given after last year’s disastrous changes to the system. “My question is straightforward. What about the rest of the high street, when other businesses have seen a 15% increase this year and their business rates bill more than double since 2024?” Jon Hendry Pickup, boss of holiday camp chain Butlin’s, said: “Excluding major parts of the sector from this relief suggests those pressures are somehow less significant for some operators.” Experts suggested the help for pubs would be part of a wider reform of business rates. Other changes announced by Mr Burnham in his first week include: The Government said on Tuesday it would remove VAT from domestic electricity bills from October 1, with the next price cap announcement in late August. The £45 off the average bill is on top of the £150 removed by Keir Starmer's government in the Budget last year - although that ended up being slightly less in practice as other costs contributing to the price cap increased. Small businesses who qualify for the domestic energy VAT relief, charities, and residential care homes eligible for the reduce rate will also see a cut on their bills. Newly appointed Chancellor John Healey MP said: "For too long, too many people have struggled with the cost of living. Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter. "This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.” Bus users will see single fares limited to £2 across England outside London from January. It is part of the new Prime Minister's plans to offer a cost of living lifeline to hard-pressed voters. Without the cap, the government warned, fares could soar above £10 on some routes. The Prime Minister said: “Good, affordable transport links are an essential. No one should be priced out of those and left behind. “But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country. “Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living. As I said on my first day in office – I will build a country for everyone, everywhere. That means more connected communities, better access to opportunities, and a lighter load on people’s lives.”