Burnham cuts business rates for pubs, clubs and live music venues in England by 20 per cent

The £100m commitment will be financed by clamping down on businesses such as vape shops

Andy Burnham has announced a 20 per cent reduction to business rates for pubs, clubs and music venues. The £100m commitment will be financed by clamping down on businesses, such as vape shops and tax-avoidant online retailers, which “do not make a positive contribution to local communities,” the government said.

The measure forms part of Burnham’s promise to provide Brits with “breathing space” on the cost of living, though this marks the first policy specifically targeted at businesses.

Pubs and hospitality establishments have been lobbying for a reduction to business rates after their tax bills were pushed skyward by Rachel Reeves’ Autumn Budget last year.

The Prime Minister said this policy demonstrates that his government will “back the businesses that people want to see in their communities” rather than standing idly by while “cherished venues have disappeared from our local high streets”, as reported by City AM.

The reduction to business rates for pubs had been a central promise during Burnham’s campaign throughout the Makerfield by-election.

During the campaign pledge, Burnham had criticised Keir Starmer for “undervaluing” pubs. Labour had “got this wrong in government,” he said.

Chancellor John Healey said: “Pubs, clubs and live music venues are at the heart of communities across the UK.

“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.”

The pledge was warmly received by the British Beer and Pub Association (BBPA) during the Makerfield campaign. Its chief executive, Emma McClarkin, said pubs “continue to pay a disproportionately higher rate which grinds down their ability to keep the doors open”.

“A further 20 per cent would be a real boost for the local, and raising the threshold so many smaller pubs get taken out of paying rates would make a real difference to high streets and livelihoods,” she had said.

Pressure on the government to overhaul the business rates system has extended well beyond the hospitality sector, with high street retailers arguing the tax puts them at a significant disadvantage compared to their online counterparts.

A coalition of retail trade bodies has urged Burnham to slash business rates for all high street businesses by 37 per cent, by introducing a two per cent levy on online sales.

Earlier in the week, the Prime Minister announced measures to reduce VAT on household electricity bills and introduce a £2 bus fare cap, though both policies faced scrutiny over how they would be financed.