Cutting business rates for pubs, clubs and live music venues is the third policy to be announced since Andy Burnham became Prime Minister on Monday July 20
Business rates will be slashed for pubs, clubs and live music venues across England from April next year, Downing Street has announced.
In his third major announcement since becoming PM, Andy Burnham said the 20% cut would protect pubs and high streets. He accused his predecessors of standing by while cherished venues are lost.
The new business rate cuts will benefit nearly 32,000 venues – saving the typical pub an estimated £1,100 in the next financial year. Mr Burnham and Chancellor John Healey are set to review the rates paid by businesses they say do not benefit communities, such as vape shops. And firms that sell through online marketplaces but do not pay their fair share of tax also face a crackdown.
Mr 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.”
The British Beer and Pub Association (BBPA) estimates that two pubs are closing each day – with an estimated 2,400 job losses in the first three months of this year.
Under plans unveiled on Thursday morning, the rate cut will not apply to the very largest live music venues. There will be more details of which businesses are eligible to be announced at the autumn Budget, No10 said.
Mr 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.”
VAT cuts on household electricity bills
The Government said on Tuesday it would remove VAT from domestic electricity bills from October 1, with the next price cap announcement in late August.
The £45 off the average bill is on top of the £150 removed by Keir Starmer’s government in the Budget last year – although that ended up being slightly less in practice as other costs contributing to the price cap increased.
Small businesses who qualify for the domestic energy VAT relief, charities, and residential care homes eligible for the reduce rate will also see a cut on their bills.
Newly appointed Chancellor John Healey MP said: “For too long, too many people have struggled with the cost of living. Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.
“This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.”
Return of £2 bus fare cap
Bus users will see single fares limited to £2 across England outside London from January. It is part of the new Prime Minister’s plans to offer a cost of living lifeline to hard-pressed voters.
Without the cap, the government warned, fares could soar above £10 on some routes. The Prime Minister said: “Good, affordable transport links are an essential. No one should be priced out of those and left behind.
“But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country.
“Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living. As I said on my first day in office – I will build a country for everyone, everywhere. That means more connected communities, better access to opportunities, and a lighter load on people’s lives.”