Badenoch attacks Burnham’s 20% pub rates cut as ‘too small for Britain’
Conservative leader Kemi Badenoch says Andy Burnham’s 20% business rates cut for pubs, clubs and music venues lacks ambition and fails to tackle wider pressures on UK high streets.
By The Guardian
Prime Minister Andy Burnham has announced a 20% cut in business rates for eligible pubs, social clubs and live music venues across England from next April as part of a package designed to support the hospitality sector.
The Government said almost 32,000 businesses are expected to benefit, with the average pub set to save around £1,100 during the next financial year. Worth around £100 million a year, the scheme will apply to smaller hospitality and entertainment venues, while the largest live music venues, including arenas and stadiums, will be excluded.
The discount will operate alongside existing business rates support and previously announced relief schemes. Ministers say it will be funded through changes to reliefs for businesses considered not to contribute positively to local communities, including some vape shops, alongside tougher enforcement against online marketplaces that fail to meet UK tax obligations. Further details, including eligibility rules, are expected at the Autumn Budget.
The announcement has been welcomed by representatives of grassroots live music venues, who described the additional support as a positive step towards improving the financial outlook for smaller venues. Industry groups have also called for wider reforms to ensure all grassroots venues benefit and to create a more consistent approach across the UK.
Hospitality operators have reacted more cautiously, pointing out that many businesses have seen business rates rise sharply following recent property revaluations, in some cases by more than 100%. While many believe the new relief will reduce some of that pressure, they warn it is unlikely to reverse years of rising operating costs or prevent every closure.
The measures form part of the Government’s wider programme to support households and businesses, alongside policies including changes to bus fares and domestic electricity bills. Ministers maintain the package can be funded without broad tax increases, although further details are expected later this year.
The announcement has also sparked a political row, with Conservative leader Kemi Badenoch arguing the plans lack ambition.
She said the package would do little to address the wider challenges facing Britain’s high streets and repeated her party’s proposal to abolish business rates for most high street businesses, including shops, restaurants, hospitality and leisure venues. She also challenged the Government to rule out future tax rises to fund its wider spending plans.
The exchange highlights the differing approaches to business rates reform. While the Government is focusing on targeted relief for pubs, clubs and live music venues, the Conservatives are calling for broader structural changes affecting a much wider range of businesses.
Businesses across the hospitality sector will now be watching the Autumn Budget for full details of the scheme, including how eligibility will be applied and whether further business rates reforms are announced.