Britain23 July, 20263 min read
Andy Burnham Cuts Business Rates 20% For English Pubs, Clubs, and Live Music Venues
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20% business rates cut for pubs, clubs and live music venues from April; saves £1,100. Costs £100m; funded by reviewing business rate reliefs.
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Burnham’s Rates Cut
Prime Minister Andy Burnham announced a 20% reduction in business rates for pubs, clubs and live music venues in England from April next year, with the government estimating the plan will cost £100m and save firms around £1,100 next year. The BBC said the discount is expected to benefit almost 32,000 venues and will not apply to the “very largest” live music venues, while the GOV.UK release said the 20% cut will benefit nearly 32,000 pubs, clubs and live music venues. GOV.UK said the measure is “fully funded” through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops, and through revenue raised from reforms to online marketplaces.
Burnham defended the focus on pubs when he spoke from a pub in Essex, saying pubs “need to know that the cavalry is coming,” as the BBC reported. The BBC also said the government estimates the plan will save firms around £1,100 next year, and that nightclubs are specifically excluded in the guidance while social clubs are included.
Funding and Eligibility Fight
Burnham said the 20% being knocked off rates for pubs, clubs and live music venues across England from April next year was a “first step,” while Press Association Political Staff reported that gambling arcades and vape shops will see their business rate relief slashed to raise the £100 million a year to fund the move. The BBC reported that the Treasury said nightclubs were not covered by the announcement and quoted a spokesperson saying nightclubs play an important role in local communities and high streets. The BBC also reported that the Night Time Industries Association welcomed the announcement but was seeking clarity on eligibility, with chief executive Mike Kill adding, “We look forward to working constructively with government to ensure nightclubs are fully recognised within these measures.”
Conservative leader Kemi Badenoch challenged the scale of the package, telling the BBC: “When I look at the plans that he has announced for the country I find myself asking 'is that it'?” The BBC further said the government is continuing to look at the wider business rates system and how it can support the wider High Street, noting that local authorities decide which venues are eligible “where eligibility is unclear” under current reliefs.
What Comes Next
The GOV.UK statement said the government will crack down on businesses that sell through online marketplaces but do not comply with their tax obligations, and it said the consultation on extending VAT online marketplace liability can be found on GOV.UK. GOV.UK added that revenue raised from these reforms will be reinvested in improvements to the business rates system, and it said the government will return to its commitment to reform the wider business rates system, including Small Business Rates Relief, at the Budget. The BBC reported that details about which businesses are eligible will be announced at Chancellor John Healey’s first Budget in the autumn, and it said the business rates discount will apply on top of the existing support after a 15% cut earlier in 2026.
“Revenue raised from these reforms will be reinvested in improvements to the business rates system.”
In the same BBC report, UK Hospitality’s chief executive Allen Simpson said Burnham’s plans are “a good start” but added, “Neither hotels nor restaurants have had the help they need.” The BBC also quoted Iain Hoskins, who owns Ma Pub Group in Liverpool, saying the relief would help “chip away” at rising costs but questioning how many venues would benefit, with the BBC adding that the “devil is in the detail” for the impact.