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Andy Burnham has announced a cut in business rates targeted at pubs, social clubs, and live music venues in England, a move warmly received by leaders in the hospitality industry. This initiative marks his third major policy statement in as many days. Industry representatives, such as UK Hospitality, highlighted that Burnham’s commitment to supporting this sector remains strong despite his recent travels. Tax analysts estimate that the 20% discount, which supplements emergency business rates relief introduced earlier this year, could save the average pub over £1,000.
However, some other local businesses voiced dissatisfaction as they were excluded from the relief package. Several High Street enterprises called for the government to broaden the support to include sectors beyond hospitality venues. They argue that the current scope of the business rates cut overlooks other community-focused enterprises facing similar financial pressures.
Keith Bott, owner of nine pubs under the Titanic Brewery in the Midlands, welcomed the relief, stating that the government is “finally recognising the plight of the hospitality industry and trying to help.” Bott outlined several economic challenges for pubs, such as increased employer National Insurance contributions, rising minimum wage levels, the inflationary environment, and general cost-of-living pressures. He noted that the hospitality sector is “heavily taxed,” with up to 40% of turnover going to the Treasury. Bott emphasized the need for a fairer tax system, pointing out that online retailers often pay disproportionately low business rates. He also called on the government to consider reducing the duty on draft beer, focusing on products sold within pubs.
Not all affected businesses share the optimism shown by the hospitality sector. Ruth Dawson, who runs HD3 Fitness Centre in Huddersfield, lamented being excluded from the business rates discount. She described her gym as “exactly the kind of work the government says it wants to support,” yet it has been “left out in the cold.” Dawson expressed concern that business rates represent a severe threat to her fitness centre’s viability. She argued that community gyms play a vital role by keeping older residents active and connected—functions as crucial to the High Street as pubs or social clubs, particularly in light of stresses on health and social care resources. She called for an expansion of government support to include community leisure facilities.
Ludoquist board game café owner Nick Smith from Croydon expressed confusion and frustration over the relief package. Although his establishment holds a license similar to pubs, it does not align with the government’s definition of a “pub” and thus risks exclusion from the relief. Smith described the announcement as reminiscent of the “trauma of Covid days,” when government updates necessitated extensive research to understand eligibility. He added, “It is not inconceivable that I am in fact a pub. But I don’t think I am. No-one would describe me as a pub. I’m a cafe/bar/restaurant.” Smith identified VAT rates as a bigger obstacle than business rates, urging a reduction of the current 20% hospitality VAT to levels seen in many European countries.
Supporting this perspective, Sam Lamiroy, owner of 45 Queen Street, a bar and restaurant in Penzance, agreed that the business rates cut is only a modest step forward and described it as “just lip service.” Lamiroy explained that given typical annual turnovers ranging between £500,000 and £1 million for pubs and restaurants, a £1,000 saving has limited impact. He urged the government to focus on lowering the hospitality VAT from 20% to 10%, aligning with several European counterparts. Lamiroy also fears that his business will not qualify as a “pub” under the current scheme. Highlighting the wider significance of hospitality venues, he stressed their role as critical entry points into the workforce for many young people and warned that closures affect entire teams, not just individual businesses
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