British Prime Minister Andy Burnham said on Thursday that he will cut business rates, a UK commercial property tax, by 20% for pubs, clubs and live music venues from April, the third policy measure he has unveiled in three days as he seeks, in his words, to help households and businesses.
Burnham took office on Monday, succeeding Keir Starmer, who resigned as prime minister. Since then, Burnham has also pledged to scrap VAT on domestic electricity bills this winter and to cap bus fares in England at two pounds (2.35 euros) from January.
“This government will back the businesses that people want to see in their communities,” said the former mayor of Greater Manchester.
Burnham said the rates cut for pubs, clubs and live music venues would allow around 32,000 businesses to save roughly 1,100 pounds (1,300 euros) a year.
The measure will cost the government 100 million pounds annually and is expected to be welcomed by small independent venues as well as major pub groups such as J D Wetherspoon, Marston’s and Fuller, Smith & Turner.
Burnham did not announce tax relief for restaurants or hotels, nor did he respond to the hospitality industry’s call to halve sales tax for the sector.
The government said the rates cut would be funded largely through a review of tax reliefs for businesses, such as vape shops, that it says “do not make a positive contribution to local communities,” as well as a crackdown on tax evasion by businesses selling through online marketplaces.
Pubs, a cornerstone of British community life, are closing at a rate of around one a day, according to the British Beer and Pub Association. Like the wider hospitality sector, they have been squeezed by sharply rising costs, particularly for electricity.
The opposition Conservative Party has called on Burnham to explain clearly how he plans to fund the measure, which is due to take effect from next April.
In a letter to the new prime minister, around 120 UK-based millionaires, including former footballer and broadcaster Gary Lineker, called for higher taxes on their own wealth.
“We have the means,” wrote the members of Patriotic Millionaires UK, a campaign group of wealthy Britons, adding that higher taxes on the largest incomes could raise the government around 24 billion pounds.
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