The government has confirmed a 20% business rate cut for pubs, clubs, and live music venues in England from April 2027. This cut will be funded by a review of existing business tax reliefs.
More details will be revealed in the Autumn Budget, but it is known that the rate cut won’t apply to the ‘very largest’ music venues.
The measure is expected to cost around £100 million a year and will save pubs an estimated £1,100 in tax next year.
Andy Burnham stated that the cuts will be funded by a review of tax reliefs on businesses that “do not make a positive contribution to communities, such as vape shops.”
He also announced a crackdown on businesses selling through online marketplaces that “do not comply with their tax obligations.”
“Pubs, clubs, and live music venues are at the heart of communities across the UK,” says Chancellor John Healey. “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.”
Chancellor John Healey added, “We are determined to bring hope back, give businesses the support they need, and generate growth in every postcode.”
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Chief Secretary to the Treasury, Emma Reynolds, hinted at “further reforms” that could affect hotels, restaurants, and cafés in the lead up to the Budget.
Michelle Ovens CBE, CEO and founder of Small Business Britain, said, “Many of the UK’s small businesses are based on our high streets, and this should be the start of wider support for businesses that are so vital to our local communities.”
Summer can provide a welcome boost for many high street businesses.
However, it also brings additional pressures, making it essential for the government to continue investing in local businesses and communities.
For those unfamiliar, business rates are a tax on businesses that occupy commercial properties, and they can be a significant burden for small businesses and startups.
They are a way for local governments to fund public services and infrastructure.
As the government moves forward with its plans to support local businesses, they will likely see more discussions about card payments and how they can be reformed to better support small businesses and entrepreneurs.
