Andy Burnham’s government has unveiled a significant boost for pubs, clubs, and music venues by introducing an additional 20% cut in business rates. This move, set to take effect in April next year, is expected to save an average pub around £1,100 annually, benefiting approximately 32,000 businesses nationwide.
In a broader effort to strengthen local economies, Burnham also pledged a review of tax reliefs granted to so-called ‘anti-social businesses,’ such as vape shops. The Prime Minister emphasized the goal to build an economy that benefits every UK postcode.
“For too long, cherished venues have vanished from our high streets,” Burnham said on July 23. “Today, we’re reversing that trend. This government stands firmly behind the businesses our communities cherish. Protecting pubs and local high streets—the heart of our neighborhoods—is our priority. This announcement is just the beginning of our work to restore hope throughout the country.”
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This announcement follows other recent measures aimed at easing public expenses amid the cost-of-living crisis, including capping adult single bus fares at £2 per journey and scrapping the 5% VAT on electricity bills starting October.
Officials confirmed the business rates cut is fully funded. While the energy bill relief is financed by cancelling the digital ID card initiative, the £100 million cost of the business rate cut will be partly offset by reviewing tax relief allocated to businesses perceived as not contributing positively to communities, like vape shops. Additionally, the government intends to crack down on online sellers evading tax through stricter regulations on online marketplaces, although the final details of this policy are yet to be announced.