Business rates cut for pubs and clubs a positive step – Chamber

A reduction in business rates for pubs, clubs and live music venues is a welcome first step to helping struggling firms, business leaders said today.

But Greater Birmingham Chambers of Commerce warned a comprehensive reform of business rates is still long overdue.

Prime Minister Andy Burnham today announced that pubs, clubs and live music venues in England will receive a 20 per cent cut to their business rates bills from next April.

He said the £100m package would be fully funded through reviewing reliefs for businesses that do not make a positive contribution to communities, such as vape shops.

It is his third cost-of-living announcement since taking office on Monday – with the new PM also vowing to cap bus fares at £2 and cut VAT on electricity bills.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Andy Burnham’s announcement of a further cut to business rates for pubs, clubs and live music venues is a positive step and a welcome recognition of the vital economic, cultural and social contribution these venues make to our town and city centres.

“It will be particularly welcomed after the sustained increases in business costs the hospitality sector has faced in recent years.

“But ultimately, this is a sticking plaster rather than a cure. Businesses are still waiting for the comprehensive reform of business rates that has been promised for many years.

“As ever with business rates, the devil is in the detail. Firms need clarity on who will qualify, how exactly the policy will be funded, and what it means for wider reform of the system.

“Meaningful, long-term reform remains essential if we are to create a fairer tax system that supports investment, growth and thriving high streets.”

The announcement came as the UK hospitality sector united under the ‘VAT’S THE PROBLEM’ campaign, petitioning the government to lower VAT for hospitality to 10 per cent from 20 per cent.

The campaign’s target is to achieve one-million signatures and is over a quarter of the way there.

Cafes, bars, pubs and restaurants have all backed the campaign spearheaded by chef, restaurateur and pub owner Tom Kerridge.

Ann Tonks, director of Chapter restaurant and bar in Edgbaston, is among those supporting the initiative.

She said: “There’s a misconception that VAT in hospitality is an added tax on the consumer, which it’s meant to be.

“However, it’s become a tax that’s now absorbed by the venue. We can no longer set out our prices with the margin we need to make and then add another 20 per cent on top - the price point would be uncommercial.

“With eye-watering rises in utility costs, minimum wage, NICs and food inflation, we’re all struggling to keep our prices at accessible levels.

“Consequently, every quarter, each venue has to give up an unsustainable level of turnover to HMRC.

“We’re urging people to sign the petition to give our industry a better chance of survival, allowing us to keep more income so we can grow, invest in our businesses and create more jobs.

“The Hospitality sector has long made the point that it is one of the most democratic, diverse employers in the country reaching hard- to- penetrate communities and a positive pathway for the economically inactive.

“While hospitality is a discretionary spend it’s essential to the nation’s economy and culture

“As a key employer, cultural asset and heartbeat of the high street, we can be a source of inclusive, sustainable growth. We just need enough oxygen to survive.”