The rate cut has been welcomed, but saves pubs, bars and clubs just £21 a week...
New PM Andy Burnham has announced a 20% cut in business rates for pubs, clubs and live music venues in England, offering some relief to a sector facing mounting pressures from all sides – from rising wages and energy bills to increased National Insurance costs.
The measure will come into force in April 2027 and is expected to save a typical pub around £1,100 a year. Around 32,000 venues are expected to benefit, although the largest live music venues will be excluded and full eligibility details will not be confirmed until the autumn Budget.
The announcement has been welcomed as a sign that the new government recognises the strain on hospitality and nightlife. However, operators and trade bodies have questioned whether the savings will be substantial enough to prevent further closures, particularly after large increases in rateable values and other operating costs.
What the cut means:
- Pubs, clubs and qualifying live music venues will receive a 20% reduction in their business rates bills.
- The measure applies across England from April 2027.
- A typical pub is expected to save approximately £1,100 during the first year – a saving of only £21 per week.
- The policy is expected to cost the Treasury around £100 million annually.
- Funding will partly come from a review of tax reliefs given to businesses including vape shops, alongside attempts to recover unpaid tax from some online marketplace sellers.
- Restaurants, cafés, hotels and the largest music venues are not currently included.
UKHospitality chief executive Allen Simpson described the policy as ‘a good start’, but it falls significantly short of the much-demanded reduction in VAT that has become a clarion call from the hospitality industry, notably Tom Kerridge’s #VATsTheProblem campaign.
Chief executive of the Night Time Industries Association Michael Kill said the tax break could provide ‘meaningful relief to businesses facing sustained cost pressures’.
Ash Corbett-Collins, CAMRA Chairman, added: “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.”
On the new measure, chancellor John Healey said: “Pubs, clubs and live music venues are at the heart of communities across the UK.
“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.”
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