Andy Burnham keeps promise made in Wigan by cutting business rates for pubs, clubs and music venues
Prime minister Andy Burnham has announced business rates will be cut by 20 per cent for pubs, clubs and live music venues across England from April – a policy he first revealed while visiting Wigan firms on the campaign trail.
He went to All You Need Is Lunch, in Ashton, and The Holts Arms, in Orrell, last month as part of the Makerfield by-election campaign and spoke to the owners about the issues they were facing.
He vowed that, if elected, he would back family-run firms, saying: “I am on your side”.
And now Mr Burnham has announced the cut in business rates will be implemented, with nearly 32,000 hospitality businesses set to benefit.
It is expected to save a typical pub some £1,100 annually, but will not be available to the very largest live music venues.
It will cost around £100m a year.
The overhaul of business rates will be funded through a review of reliefs for businesses that “do not make a positive contribution to local communities” such as vape shops and a crackdown on online marketplaces that do not comply with tax obligations, No 10 said.
Mr Burnham previously pledged to raise taxes on out-of-town warehouses for online giants such as Amazon to help pay for cuts to rates for hospitality firms.
He said: “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 Government will look to set out further reform to the wider business rates system, including small business rates relief, at the Budget.
It is part of a bid from Mr Burnham to focus on cutting costs for the public since entering Downing Street on Monday, which has also seen him announce plans to remove VAT from electricity bills and reinstate a £2 cap on single bus fares across England.
The 20 per cent cut comes on top of the 15 per cent relief announced in January.
Chancellor John Healey said: “We are determined to bring hope back, give businesses the support they need and generate growth in every postcode.”