Burnham to cut business rates for pubs, clubs and live music by 20%
Andy Burnham has cut business rates for pubs, clubs and live music venues by 20%, in the latest example of a flurry of policies since taking over as prime minister.
The cuts will cost about £100m a year, but will be partly funded by reviewing reliefs for “anti-social businesses”, with vape shops in particular singled out. 10 Downing Street said it will look at businesses that “do not make a positive contribution to local communities”.
The cut would save the typical pub an estimated £1,100 next year. 32,000 businesses will qualify – although the largest music venues will not benefit, with details due in the budget.
The government will also look at raising more tax from “businesses that sell through online marketplaces but do not comply with their tax obligations, putting them at an unfair advantage over businesses that play by the rules”. That could include more measures for online marketplaces who host sellers, Downing Street said.
Burnham has previously pledged to raise taxes on out-of-town warehouses for online companies such as Amazon to help pay for cuts to rates for hospitality firms.
Michael Kill, chief executive of the Night Time Industries Association, a lobby group, said the tax cut would provide “meaningful relief”. He said:
Having worked closely with the new Prime Minister’s team over recent weeks, it is encouraging to see a positive outcome from genuine engagement with the sector. The inclusion of clubs alongside pubs and live-music venues is particularly important and demonstrates a broader recognition of the vital economic, cultural and social contribution made by the night-time economy.
This is the third major policy announcement in as many days from the new government. Together, these interventions have undoubtedly begun to shift confidence across the sector and created renewed optimism that our concerns are being heard.
Burnham said:
For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.
The agenda
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11am BST: UK Confederation of British Industries industrial trends orders (July; previous: -45; consensus: -40)
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1:15pm BST: European Central Bank interest rate decision (consensus: no change)
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1:45pm BST: European Central Bank press conference
Key events
British Gas owner cutting 1,300 jobs
The owner of British Gas has said it is cutting 1,300 jobs because “changing customer behaviour” means it does not need as many service workers.
Centrica said it is reducing its customer operations workforce by about 14% – despite British Gas already having the third worst score among 17 companies rated by consumer group Which?. British Gas received two out of five stars for its customer service in the rating, and it has consistently ranked at the bottom of its peers.
On the other hand, Centrica said it had “strong customer satisfaction” and lower complaints per customer in its retail operation.
It came as the FTSE 100 company reported a £710m operating profit for the first six months of 2026, compared with a loss of £69m the year before.
A bit more from the Night Times Industries Association lobby group, which is also wary of the small print – while welcoming the broad policy.
Michael Kill, its chief executive, said he wanted to know in particular which live music venues would be excluded. He said:
We are still awaiting the full details and eligibility criteria, which are expected to be announced at the autumn Budget. We will also seek clarity on the proposed exclusion of the largest live-music venues and continue to press for the final scheme to provide the broadest possible support.
The government is undoubtedly making the right noises. We look forward to continuing this constructive dialogue and ensuring these commitments translate into tangible and inclusive support for businesses throughout the night-time economy.
Rob Davies
Pubs, clubs and live music venues might be happy with the tax relief announced by Andy Burnham, but other hospitality businesses are left out.
Kate Nicholls, chief executive of UK Hospitality, a lobby group, told the Guardian:
We welcome this as a positive down payment on the PM’s commitment to support hospitality and his pledge to return to look at this again at the budget. While support for pubs, bars and live music is welcome, [it misses out] the restaurants, cafes and hotels which are the heart of our communities and backbone of the high street.
So if the PM truly wants to to deliver a high street renaissance and growth in every postcode then we need to look at a business rates cut for the whole of hospitality and tackle the broader cost of doing business. We’ve seen £6bn extra taxes across the sector in the last two years so we need more.
Burnham to cut business rates for pubs, clubs and live music by 20%
Andy Burnham has cut business rates for pubs, clubs and live music venues by 20%, in the latest example of a flurry of policies since taking over as prime minister.
The cuts will cost about £100m a year, but will be partly funded by reviewing reliefs for “anti-social businesses”, with vape shops in particular singled out. 10 Downing Street said it will look at businesses that “do not make a positive contribution to local communities”.
The cut would save the typical pub an estimated £1,100 next year. 32,000 businesses will qualify – although the largest music venues will not benefit, with details due in the budget.
The government will also look at raising more tax from “businesses that sell through online marketplaces but do not comply with their tax obligations, putting them at an unfair advantage over businesses that play by the rules”. That could include more measures for online marketplaces who host sellers, Downing Street said.
Burnham has previously pledged to raise taxes on out-of-town warehouses for online companies such as Amazon to help pay for cuts to rates for hospitality firms.
Michael Kill, chief executive of the Night Time Industries Association, a lobby group, said the tax cut would provide “meaningful relief”. He said:
Having worked closely with the new Prime Minister’s team over recent weeks, it is encouraging to see a positive outcome from genuine engagement with the sector. The inclusion of clubs alongside pubs and live-music venues is particularly important and demonstrates a broader recognition of the vital economic, cultural and social contribution made by the night-time economy.
This is the third major policy announcement in as many days from the new government. Together, these interventions have undoubtedly begun to shift confidence across the sector and created renewed optimism that our concerns are being heard.
Burnham said:
For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.
The agenda
-
11am BST: UK Confederation of British Industries industrial trends orders (July; previous: -45; consensus: -40)
-
1:15pm BST: European Central Bank interest rate decision (consensus: no change)
-
1:45pm BST: European Central Bank press conference
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