Hospitality Sector Says Burnham’s Business Rates Cut Must Go Further

News of the 20% reduction in business rates for pubs, clubs, and live music venues has been met with calls for wider, more ambitious business reform to support the UK’s entire hospitality sector.

The rate cut for pubs, clubs, and live music venues, which is set to take effect from next April, will benefit nearly 32,000 businesses across England, according to the government.

Prime Minster Andy Burnham said the measure will translate into estimated annual savings of £1,100 for the average pub in 2027. 

“This government will back the businesses that people want to see in their communities,” explained the Prime Minister. 

“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,” he added. 

Calls For More Action

While welcoming the move as a “first step”, UKHospitality said the sector now needs a “meaningful, sector-wide solution”.

“The Prime Minister is right to say this should be just the start,” pointed out Allen Simpson, Chief Executive of UKHospitality. 

“Restaurants are struggling just as much as pubs, while hotels are due to see their business rates bills increase by an average of 110%, the highest in the sector. 

“After years of rising costs and tax increases that have hit investment and employment, the industry now needs a meaningful, sector-wide solution. While today’s announcement will provide welcome support for pubs, clubs and live music venues, they only account for around a fifth of hospitality jobs. The rest of the sector now needs to see the same ambition.”

Indeed, Leon boss John Vincent said restaurants are “suffering massively just like pubs”, arguing that restaurants and hotels should also receive business rates relief, reports The Times. 

Celebrity chef and publican Tom Kerridge is among the hospitality leaders warning that the savings “won’t really make a difference".

“It doesn't go far enough but it does show that there is an understanding that hospitality needs a hand, especially smaller venues,” Kerridge told The Independent. 

His comments were echoed by Great British Menu winner Nick Beardshaw, who described the move as “an absolute drop in the ocean”. 

“Business rates are normally between 2 per cent and 4 per cent of turnover in these businesses, so the reduction represents a 0.4 per cent to 0.8 per cent reduction in total costs,” stated Beardshaw in The Independent. 

“Not enough to save any businesses, as is implied in his statement about not wanting to see any more of these businesses boarded up. Many of them won’t make it to next April.”

A First Step

The government said its latest announcement is “just one step” in its plans to back communities and high streets; pledging to "return to our commitment” to reform the wider business rates system, including Small Business Rates Relief, at the Budget.

The 20% cut for pubs, clubs, and live music venues from 2027/28 comes on top the 15% relief announced by former Chancellor Rachel Reeves in January, with bills frozen in real terms for a further two years. 

The £100m annual plan will be fully funded, including through reviewing reliefs for businesses that “do not make a positive contribution” to local communities, such as vape shops. 

The government said it will also clamp down on businesses that sell through online marketplaces but do not comply with their tax obligations.