New UK PM to cut taxes for struggling pubs: ‘drop in the ocean’

New UK Prime Minister Andy Burnham has announced a 20% cut to business rates for struggling pubs, clubs, and live music venues. This measure, revealed on Thursday, is part of Burnham's efforts to alleviate the cost of living crisis. This tax cut is the third policy announcement since Burnham took office on Monday, following plans for a cap on bus fares in England and the removal of VAT on household electricity bills. The business rates reduction is anticipated to save approximately 32,000 hospitality businesses around £1,100 annually. However, the article notes that ministers were unable to specify how the tax cut would be funded.

Chancellor John Healey has announced a £100 million package to support UK businesses, particularly pubs, clubs, and live music venues. This initiative will provide a 20% cut in business rates for these sectors, aiming to save the typical pub approximately £1,100 in the upcoming financial year. Speaking to business leaders in central London on Thursday, Healey emphasized his commitment to backing British businesses across various industries, stating his concern for the cost of doing business is as significant as the cost of living. The government intends to support businesses that have experienced financial strain.

Andy Burnham plans to reduce taxes for pubs, clubs, and live music venues in England, while increasing payments from vape shops. This move is presented as a response to concerns that pubs have faced disproportionately high business rates, impacting their ability to remain open. Burnham's team worked with pub representatives before his election as Labour Party leader, and he has now acted on these issues. The article also mentions that major car manufacturers, including BMW, Ford, Nissan, and Toyota, have privately lobbied the UK government to reconsider the ban on new petrol and diesel cars after 2035, advocating for an "open technology approach."

From April next year, pubs, clubs, and live music venues in England will benefit from a 20% reduction in business rates. This discount, announced by Downing Street, will affect approximately 32,000 hospitality businesses, with a typical pub expected to save around £1,100 annually. However, the largest live music venues will not be eligible for this relief. The funding for this measure will come from a review of reliefs for businesses deemed not to contribute positively to local communities, such as vape shops, and increased tax compliance from online marketplaces. This initiative aligns with a previous pledge to support hospitality businesses and high streets. Further reforms to the broader business rates system are anticipated at the upcoming budget.