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England cuts business rates for pubs, clubs and live music by 20%
The tax changes are expected to cost about £100 million per year, with the typical pub saving an estimated £1,100 next year as qualifying businesses rise to 32,000.
England’s new government under Prime Minister Andy Burnham is cutting business rates for pubs, clubs, and live music venues by 20%, the Guardian Economics reported. The policy is framed as part of a rapid series of changes since Burnham took office.
The government said the rate cuts will cost about £100 million per year, with part of the funding coming from reviewing reliefs for “anti-social businesses,” specifically singling out vape shops. It said the qualifying package would apply to 32,000 businesses, while the largest music venues would not benefit, with details due in the budget.
Downing Street also said it will look at raising more tax from businesses that sell through online marketplaces but do not comply with their tax obligations, aiming to reduce advantages over firms that follow the rules. The outlet noted Burnham has previously pledged to raise taxes on out-of-town warehouses used by online companies such as Amazon to help pay for hospitality rate cuts.
Industry reaction was positive from the Night Time Industries Association. Michael Kill, its chief executive, said the business-rate cut would provide meaningful relief and pointed to the inclusion of clubs alongside pubs and live-music venues as recognition of the night-time economy’s economic and cultural contribution.