Government to cut business rates for pubs and clubs

(Sharecast News) - The government unveiled plans to cut business rates for pubs and clubs on Thursday, the latest policy to be announced by new prime minister Andy Burnham. Under the plans, pubs, clubs and live music venues in England will see their business rates bills cut by 20% from April. The government insisted the £100m package was fully funded, in part by stripping relief from businesses that "do not make a positive contribution to local communities", such as vape shops.

It will also crack down on businesses that sell through online marketplaces but do not comply with tax obligations.

Burnham, who took over from Keir Starmer as prime minister on Monday, said: "For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I'm changing that.

"This government will back the businesses that people want to see in their communities."

The rate cut, which will not be extended to the very largest live music venues, will save the typical pub an estimated £1,100, the government claimed.

A number of business groups welcomed the move, with trade body UK Hospitality calling it a "good start". However, many in the industry have long-been seeking bolder changes, including slashing VAT from its current rate of 20% to bring it closer to the European average of 9%.

Specific details on how the rate cut will work and how it will be funded are expected in the autumn Budget.

The government has also announced this week plans to remove VAT from household electricity bills and capping bus fares, as it seeks to tackle the spiralling the cost of living crisis.