UK’s Burnham to cut tax on pubs, clubs and music venues
Britain’s new prime minister will cut business rates for pubs, clubs and live music venues by 20 percent from April; This will be his third announcement in three days of measures to help households and businesses.
Since coming to power on Monday, Andy Burnham has also said he would scrap the tax on domestic electricity bills and cap bus fares in a bid to show he could act more decisively than his predecessor Keir Starmer.
“This government will support the businesses people want to see in their communities,” said Burnham, the former mayor of Greater Manchester.
Chancellor of the Exchequer John Healey, who took office this week, said he wanted to go further in reducing the cost of doing business in Britain to counter pessimism about the economy.
Burnham said the cut to hospitality business rates would save the typical pub around Stg1100 ($A2100) in 2027, with around 32,000 venues benefiting.
The policy will cost the government Stg100 million a year and is sure to be welcomed by small independent venues as well as pub groups such as JD Wetherspoon, Marston’s and Fuller, Smith & Turner.
However, this fails to meet the hospitality industry’s demand that sales tax on the sector be halved.
The government said the tax cut would be funded by a relief review for businesses that do not “make a positive contribution to local communities”, such as vape shops, and a tax crackdown on businesses selling through online marketplaces.
Burnham has previously floated the idea of increasing business rates at warehouses used by online giants such as Amazon to help businesses on the traditional high street.
While the cost of the support may be small, Burnham is trying to show that in 2024 Labor can move faster than Starmer, who spent the first few months of his first government in 14 years commissioning reviews of possible policy changes.
Burnham also needs to rebuild relations with the business community, which complains that high wages, as well as taxes on jobs and energy, are negatively impacting their ability to invest and grow.
The recent resurgence of the Iran war has raised new concerns about high energy prices and possible interest rate hikes, shaking business confidence.
Healey said he understands the frustration among employers and is concerned about the high cost of doing business in general, as well as the cost of living.
“This is just the beginning,” he said at an event at Bloomberg in the City of London’s financial district.
“We know we still have a long way to go.”
