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UK to cut business rates 20% for struggling pubs, clubs, and venues
The government estimates the measure will save about 32,000 hospitality businesses roughly £1,100 per year, but it is projected to cost the public finances around £100 million annually.
The UK government announced a 20 percent cut to business rates for pubs, clubs, and live music venues, positioning the change as part of new Prime Minister Andy Burnham’s effort to ease the cost of living.
According to SCMP Economy, the policy is expected to reduce the tax burden for about 32,000 hospitality businesses, saving them roughly £1,100 per year, while ministers estimate the plan will cost government finances about £100 million per year.
The announcement was described as the third major policy move since Burnham took office on Monday, following a planned cap on most bus fares in England and the removal of value added tax on household electricity bills.
SCMP Economy also notes that while some operators welcomed the step, funding questions remained, with Ma Pub Group owner Ian Hoskins calling it a “drop in the ocean” in comments to Sky News.