PM Slashes Business Rates Bills for Pubs, Clubs and Live Music Venues
Prime Minister Andy Burnham said on Thursday he would lower business rates for pubs, clubs and live music venues by 20% from April as part of his drive to lower cost pressures on households and businesses, and revive communities.
In a statement the government said that for too long, the pubs, social clubs, and live music venues that form the backbone of local high streets have been replaced by boarded up windows and for sale signs.
Yesterday’s (Thursday) announcement forms part of the Government’s wider plan to drive good growth in every postcode by reducing the burden on local businesses, boosting investment on high streets and helping communities to thrive.
New business rate cuts will benefit nearly 32,000 pubs, clubs and live music venues, saving the typical pub an estimated £1,100 in the next financial year, providing much-needed certainty for businesses looking to invest, grow and create jobs.
The changes will, the government said be fully funded, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.
Prime Minister Andy 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.”
Chancellor of the Exchequer John 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.
“This is just one step of the Government’s plans to back our communities and high streets and we will return to our commitment to reform the wider business rates system, including Small Business Rates Relief, at the Budget.”
Sector Reaction
Ash Corbett-Collins, CAMRA Chairman, said: “This is a brilliant start to the new Prime Minister’s tenure, living up to the statements that he’s made before about pubs, pints and people.
“Our business rates system is grossly unfair to pubs and social clubs, bricks and mortar businesses that are also vital social institutions for their communities and desperately needs reform.
“As always we need to see the details at the Budget, but another year of rate relief will provide vital breathing space to publicans in England, while the work to review the rating system for hospitality businesses presumably continues.”
Michael Kill, CEO of the Night Time Industries Association, said: “Having worked closely with the new Prime Minister’s team over recent weeks, it is encouraging to see a positive outcome from genuine engagement with the sector. The inclusion of clubs alongside pubs and live-music venues is particularly important and demonstrates a broader recognition of the vital economic, cultural and social contribution made by the night-time economy.
“The announcement of a 20% business-rates reduction across England from April next year is a significant and welcome intervention. With a typical pub expected to save around £1,100 annually, and the government committing approximately £100 million a year to the policy, this has the potential to provide meaningful relief to businesses facing sustained cost pressures.
“This is the third major policy announcement in as many days from the new government. Together, these interventions have undoubtedly begun to shift confidence across the sector and created renewed optimism that our concerns are being heard.
“We are still awaiting the full details and eligibility criteria, which are expected to be announced at the autumn Budget. We will also seek clarity on the proposed exclusion of the largest live-music venues and continue to press for the final scheme to provide the broadest possible support.
“The government is undoubtedly making the right noises. We look forward to continuing this constructive dialogue and ensuring these commitments translate into tangible and inclusive support for businesses throughout the night-time economy.”
The government has said the policy will be funded through a review of tax reliefs currently available to businesses it considers not to make a positive contribution to local communities, with vape shops cited as an example.
It has also announced plans to take stronger action against businesses selling through online marketplaces that fail to comply with their tax obligations.
As the announcement is still developing, the NTIA will review the full policy and eligibility criteria when they are published and assess their likely impact across the sector.
Allen Simpson, Chief Executive of UKHospitality, said: “This is good news and a welcome first step from a Government that understand the value of hospitality to jobs, growth and local communities.
“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.
“After years of rising costs and tax increases that have hit investment and employment, the industry now needs a meaningful, sector-wide solution. While today’s announcement will provide welcome support for pubs, clubs and live music venues, they only account for around a fifth of hospitality jobs. The rest of the sector now needs to see the same ambition.
“We look forward to working with the Government at the forthcoming Budget to deliver the wider businesses rates reform it has promised and create a fairer system that enables businesses to invest, create jobs and grow.”