UK PM Andy Burnham to cut business rates for pubs, clubs and music venues

UK PM Andy Burnham to cut business rates for pubs, clubs and music venues

Prime Minister Andy Burnham has announced a 20% cut to business rates for pubs, clubs, and live music venues in England, effective from April next year. The move is part of a series of policy announcements aimed at providing breathing space for businesses and citizens facing cost-of-living pressures.

The government estimates the discount will benefit almost 32,000 venues, saving the average pub approximately £1,100 annually. The policy will cost the government £100 million. Funding for the cut will be sourced through a review of tax reliefs for firms that the government claims do not make a positive contribution to local communities, specifically citing vape shops. Additionally, No.10 said it will crack down on businesses selling through online marketplaces that fail to comply with tax obligations.

The Prime Minister framed the intervention as a necessity to protect the beating heart of our communities, stating:

"For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that."

Andy Burnham, Prime Minister, via bbc.co.uk

Industry Reaction

The Night Time Industries Association (NTIA) welcomed the decision. Michael Kill, chief executive of the NTIA, said the inclusion of clubs alongside pubs and music venues demonstrates a recognition of the vital economic, cultural and social contribution of the night-time economy. Kill noted that the move could provide meaningful relief to businesses dealing with sustained cost pressures.

UK Hospitality chief executive Allen Simpson described the plans as a good start. Similarly, Tina McKenzie, policy chief for the Federation of Small Business (FSB), called the announcement encouraging, suggesting it helps fix damage from previous business rates decisions that have hindered small business growth.

However, some operators remain skeptical. Steve Perez, founder of Global Brands and owner of two hotels, said the announcement is welcome but won't make any material difference to any pub. Iain Hoskins of Ma Pub Group in Liverpool told the BBC that while the relief helps chip away at costs, the devil is in the detail, noting that his own pubs have previously missed out on government support.

Context and Broader Economic Strategy

These measures follow a period of volatility for hospitality landlords; under previous chancellor Rachel Reeves, the government had scaled back pandemic-era discounts and announced that no discounts would exist from April this year, alongside upward adjustments to rateable values.

The announcement comes as the sector struggles. A report from the Music Venue Trust published at the start of this year revealed that most grassroots venues in the UK failed to turn a profit in 2025.

This business rates cut is the third in a series of rapid cost-of-living interventions by the new Prime Minister, who entered No.10 on Monday. Other recent measures include:

• A 5% VAT cut on domestic electricity bills for six months starting October 1, costing £850 million.
• The reinstatement of a £2 bus fare cap across England outside London, effective in January and lasting throughout 2027.

These moves coincide with data from the Joseph Rowntree Foundation showing that 7.4 million low-income UK households were unable to afford at least one essential item in the last six months, the highest number since the organization began its tracker in 2021.

Next Steps

The 20% discount will not apply to the very largest live music venues. Full eligibility criteria and further details are expected to be announced by Chancellor John Healey during his first Budget in the autumn.