Live music venues and clubs to benefit from Andy Burnham business rate cuts
Andy Burnham has laid out a new policy promising a 20% cut in business rates for pubs, clubs, and live music venues.
This is the third policy announcement that Burnham has made since being appointed as Prime Minister just three days ago. It's part of a broader plan to support the hospitality industry amidst new cost measures being taken, with the intention to “back the businesses that people want to see in their communities” as opposed to watching while “cherished venues have disappeared from our local High Streets", as reported by BBC.
This new policy is set to come into play across England from April of next year, and will not include the largest live music venues. Eligible businesses will be announced at John Healey's first Budget this autumn, but 32,000 establishments are expected to benefit.
Downing Street has also shared that the tax cut is likely to cost roughly £100 million per year, and will be funded by reviewing tax reliefs that are currently allocated to businesses that Burnham says do not make a "positive contribution" to the community, such as vape shops. The government expects to save a standard pub £1,100 in tax costs next year, with this policy also complementing the 15% business rate cut to pubs and live music venues detailed by previous Chancellor Rachel Reeves.
“Pubs, clubs and live music venues are at the heart of communities across the UK," Chancellor John Healey says of the announcement. "They bring people together, support local jobs and help keep High Streets and town centres busy — which is why we will back them all the way. We are determined to bring hope back, give businesses the support they need and generate growth in every postcode."
Independent Venue Week Founder Sybil Bell has addressed the news, stating: "Everyone will jump on the bandwagon and say it’s not enough – more needs to be done. But, honestly, give the guy a break. He’s been in office four days and already done something. The country’s finances are shot to pieces – give him some time to get a plan in place but let’s stop knocking him for what he HAS done. We know he’s passionate about music and the arts – there’s grounds for optimism. Supporting our venue community this early on is a good sign and we hope and believe there’ll be more to come."
Elsewhere, Music Venue Trust CEO Mark Davyd issued a response, commenting that the charity "warmly welcomes this morning’s announcement from the UK Government, and its recognition that Grassroots Music Venues are essential to our local communities." However, they also call for additional support, adding: "There remain some issues of implementation of previous reliefs, and we will work with colleagues in government, Department for Culture, Media and Sport, Ministry of Housing, Communities and Local Government, and HM Treasury to ensure that all grassroots music venues in England are recognised and eligible." The full statement from MVT can be read below.
The Night Time Industries Association (NTIA) has also weighed in, with CEO Michael Kill stating: "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."
“The government is undoubtedly making the right noises," he adds. "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.”
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