Burnham announces 20% tax cut for pubs and music venues

The reduction announced by Downing Street today (Thursday, July 23) is part of a bid to focus on cutting costs for the public and communities.

Chancellor of the Exchequer John Healey said: “Pubs, clubs and live music venues are at the heart of communities across the UK.” He added: “We are determined to bring hope back, give businesses the support they need and generate growth in every postcode.”

Newly appointed Chancellor of the Exchequer John Healey (Image: PA)

Prime Minister Andy Burnham had previously promised to raise taxes on out-of-town warehouses for online giants such as Amazon to help fund cuts for hospitality businesses.

The 20 per cent reduction is expected to save the average pub around £1,100 per year and will apply to nearly 32,000 businesses across England. The government has said that the very largest live music venues will be excluded from the scheme.

The changes will be funded through a review of reliefs for businesses that “do not make a positive contribution to local communities” such as vape shops.

A crackdown on online marketplaces that do not comply with tax obligations will also fund the scheme.

Mr Burnham said: “What we’re announcing today is just the start as we work to bring back hope across the country.”

Further business rates reform, including changes to small business rates relief, is expected to be outlined at the Budget.