Pubs, social clubs, and live music venues in England will get a 20% cut in their business rates from April, new prime minister Andy Burnham has announced.
Andy Burnham in Bath, at the launch of £2 bus fares for 2027, earlier this week.
Photograph: Lauren Hurley/No 10 Downing Street
The measure is designed to support “the backbone of local high streets” and could save venues some £1,100 next year.
It will be paid for by reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops. The government will also crack down on businesses that sell through online marketplaces but do not comply with their tax obligations.
“For too long, governments have stood by while cherished venues have disappeared from our local high streets,” said Burnham. “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.”
Andy Slee, chief executive of the Society of Independent Brewers and Associates (SIBA), said: “The new prime minister promised he would deliver much-needed support for our cherished community pubs on business rates, and he has acted quickly to do so. A 20% cut to business rates will make a real difference to the bottom lines.
“Our pubs and breweries contribute around 40% of turnover as taxation, compared to online global giants that only pay a fraction of that to the Treasury. Rebalancing this tax burden on business rates away from businesses that contribute to the community and support jobs in our towns and villages will make a real difference to every postcode.
“We hope this is the first step in wider support and that the prime minister also looks to reduce tax on draught beer sold in pubs and ensuring that small breweries can sell their beers to pubs across the UK.”
Steve Alton, chief executive of the BII, said: “Our members, operating independent pubs at the heart of their communities in towns and high streets across the UK, will be encouraged by this initial step taken by the new prime minister in his first few days in office. The recognition he has given to the vital role that pubs play in local economies, local employment, and the huge social value they bring to their communities is welcome.
“However, even with this additional 20% discount on current bill levels, we now need to see a significant change to the cumulative taxation faced by our sector, to allow our nations’ pubs to have the ability to grow and reach their full potential. With the average salary of a 21-year-old having increased by almost £5,000 over the last two budgets, plus the significant increases in NICs costs for employers, the discount on business rates bills, whilst a welcome step, can only be the beginning of the changes we need to see for our members.
“In order for pubs to be able to support local employment growth, particularly for young people beginning their careers, we need to see significant change to the overall tax burden they face. Our members have been clear and consistent in their calls for an urgent need to reduce their cumulative tax bill with a priority of a fair deal of VAT at 10% on all pub sales. This will be essential to provide the breathing space these vital local businesses need to grow and be at the heart of economic growth, as well as providing essential employment for young people in every postcode across the country.”
Des O’Flanagan, co-founder of PubAid, said: “This is a welcome step in the right direction for pubs in England. At a time when too many community pubs continue to face significant financial pressures, any measure that helps keep their doors open is good news, not just for the hospitality sector, but for the communities those pubs serve.
“Pubs are so much more than businesses. Every year they raise over £100 million for charities, contribute a further £40 million to grassroots sport, and help keep 1.7 million people active through their support of local clubs and activities. They provide places where people come together, tackle loneliness, support local causes, and strengthen the social fabric of towns and villages across the UK.
“Reducing business rates recognises that pubs deliver value far beyond the pint they serve. We hope this signals a broader recognition from policymakers that investing in pubs is investing in stronger and more connected communities.”
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.”
Saxon Moseley, partner and head of leisure and hospitality at leading audit, tax, and consulting firm RSM UK, said: “A shot of relief for pubs, clubs, and live venues as the government announce a meaningful cut to business rates. Pubs are at the heart of our communities, and this social value has been acknowledged with today’s planned measures to attempt to stem the flow of financial distress.
“However, a thriving high street is more than pubs, clubs, and live venues, and excluding restaurants and hotels creates confusion around eligibility and further complexity and nuance in the tax system.
“There is no doubt that this will look to offset some of the significant rate burden in the short-term, but what is needed is widespread rate reforms that instils fairness across the hospitality industry to make it cheaper for businesses to operate, making the high street a more attractive place to invest.”
Joe Squire, marketing director at Epos Now, said: “A 20% reduction in business rates is a genuinely positive step and will be welcomed by thousands of pubs, clubs, and live music venues that have been operating under intense financial pressure for several years. Any measure that lowers fixed operating costs gives hospitality businesses more breathing room to invest in staff, improve customer experiences, and build confidence for the future.”
