Pledge of long-term support for hospitality firms

A 20% cut to business rates from April for pubs, social clubs and live music venues in England could be followed by longer term support for the sector, according to a Shropshire MP.

The rate cut, announced by Prime Minister Andy Burnham earlier this week, could save firms about £1,100 next year, the government estimated.

The Labour MP for Shrewsbury, Julia Buckley, said Burnham was going to "look at the longer term package over the summer... to see what else he can do."

Buckley was speaking from The Crown in Abbey Foregate, where she experienced a shift as a landlord there.

"I came along here about four, five months ago as part of a round table organised by Camra (Campaign for Real Ale)," she told the BBC.

"I wanted to listen to all the concerns they've had over the last few months about how difficult it is in hospitality, and I directly fed that back to the minister.

"So I said: 'Why don't I spend a bit more time with you side by side, understanding for myself what it's like, so when I'm feeding into ministers, I'm really accurate in understanding what your issues are'."

She said that for The Crown, the cut would save the venue £1,156 per year.

"I think it's a very welcome change but there's a long way to go to get where we need to be," said Caleb Matthews, its business manager.

"Hospitality is on its knees at the moment, and we do need as much support as possible."

Pubs have now had two rounds of relief - a 15% cut in April and a further 20% which will come into force next year.

The business rates discount will not apply to the "very largest" live music venues.

Details about which businesses are eligible will be announced at Chancellor John Healey's first Budget in the autumn. The cut is expected to benefit almost 32,000 venues, government officials claim.

But others in the industry, such as hotels and restaurants, have questioned why the 20% cut would not extend to them.

"It's just the beginning," Buckley said.

"[Burnham is] looking at the wider package, he's also looking at VAT - so I think when we come back in September we'll see that 10-year plan which takes a much longer-term view about how we support across the hospitality sector and retail."

Matthews said VAT was "the problem".

"That campaign is very close to our hearts, and that is something that needs to be looked at," he said.

"Hopefully in September we can see changes along those lines."

The change to business rates for some hospitality firms is the latest move in what Burnham hopes will provide "breathing space" for people and businesses.

Earlier this week, the new prime minister announced that the government would cut the 5% VAT charge on electricity bills and would cap bus fares at £2 in England outside London.

But on Thursday, Conservative leader Kemi Badenoch, said: "When I look at the plans that he has announced for the country I find myself asking 'is that it'?"

She said: "Andy Burnham's ambitions for Britain are too small."

As well as reviewing tax relief on firms such as vape shops and gambling arcades in order to fund the rate cut, the government also said it will "crack down" on businesses selling through online marketplaces which "do not comply with their tax obligations".

The Federation of Small Businesses (FSB) said Thursday's announcement must be "a downpayment on action that reaches across the small business community".

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