Burnham Signals Fresh Business Rates Relief for Hospitality Ahead of Budget

Prime Minister Andy Burnham has indicated the Government is prepared to go further on business rates support for pubs, clubs and other high street venues, with fresh measures expected at the Budget on 28 October.

Speaking on BBC Radio 5 Live’s Wake Up to Money programme, Mr Burnham said ministers were looking at business rates “more broadly” for high street businesses, building on the 20% rates relief for pubs, clubs and live music venues that was among the first policies announced when he took office earlier this month.

“We are going to bring forward the VAT cuts on electricity, we are bringing forward the business rate cuts for pubs, we’re going to look at business rates more broadly for high street businesses in the budget, so there’s plenty more that we can do,” he told the programme.

Pressed on what further help struggling operators could expect, the Prime Minister acknowledged that costs remain a significant burden for the sector but stopped short of setting out firm commitments ahead of the fiscal statement.

“I wouldn’t want to promise the earth and say all can be solved, because I think people can see I’m facing a difficult financial outlook and I won’t bring forward things that I can’t fully fund,” he said.

Mr Burnham pointed to the steps already taken since becoming Prime Minister as evidence of intent, citing the removal of VAT on domestic electricity bills and the rates cut for pubs as early signals of direction.

“We’ve made a move on pubs and business rates. I’m signalling going further on business rates,” he said. “There are things that we can do, and we’ll do everything that is possible for us to do. But I think everyone knows that I’m in a position with limited room for manoeuvre.”

Rates burden acknowledged

Asked whether the previous government’s increase to employer national insurance contributions, introduced under Sir Keir Starmer and then-chancellor Rachel Reeves, had made trading conditions harder, Mr Burnham accepted that it had added to pressure already being felt across the sector alongside rising energy costs.

“Of course it added pressure, the cost of energy is adding pressure,” he said. “Businesses, I understand what they’re saying and what they’re feeling, and my job is to not just hear that but then respond to it and see what we can do.”

Background: the 20% relief

The rates cut for pubs, social clubs and live music venues was unveiled in July, when Mr Burnham described it as a “first step” for the industry, with the reduction due to take effect from April. Speaking from a pub in Essex at the time, he said operators “need to know that the cavalry is coming”.

Reaction across hospitality was mixed. While many welcomed the announcement as a sign of intent, others – including hoteliers and restaurateurs – questioned why the relief had been targeted at pubs, clubs and music venues rather than extended across the wider sector.

UK Hospitality chief executive Allen Simpson described the July announcement as “a good start” but said more action was needed. “Neither hotels nor restaurants have had the help they need,” he said. “We’ve got to see a proper solution for the most overtaxed sector in the economy at this year’s Budget.”