Summary

  • Pubs, clubs and live music venues in England will get a 20% business rates cut, Andy Burnham announces

  • The discount is estimated to cost around £100m a year and will be funded by a review of tax reliefs given to certain businesses, a statement from No 10 says

  • It will take effect from April, saving the average pub about £1,100 in tax next year, No 10 adds

  • What are business rates?

  • This is the new PM's third policy announcement in as many days, having already said most bus fares in England will be capped at £2 from January and VAT will be cut from household electricity bills in October

Live Reporting

Edited by Sam Hancock and Caitlin Doherty

  1. Business rates third announcement in three days from new PM

    Andy Burnham smiles from inside a busReuters

    Today's policy announcement is the third in as many days from new PM Andy Burnham.

    At 06:00 on Burnham's first full day as PM, the government said they would be cutting VAT from household electricity bills come October.

    That would be funded by reallocating funds through scrapping the digital ID programme, the government said.

    Then, at the same time on Wednesday, another policy dropped - a £2 cap on bus journeys across England, but outside of London, to come into effect in January.

    The majority of the funding for that will be drawn from Department for Energy Security and Net Zero funds via plans to switch grants for international climate projects in other countries into loans, officials said.

  2. 'We will back pubs, clubs and live music venues all the way', says chancellor

    John Healey wears a dark-coloured suit, white shirt and a red tieEPA/Shutterstock

    “Pubs, clubs and live music venues are at the heart of communities across the UK," says Chancellor John Healey of the business rates cut announcement.

    He says: "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," he adds.

  3. Government says cut will save pubs around £1,100 next year

    More details now on the government's announcement to slash business rates for pubs, clubs and live music venues.

    The government says it is expected to save a typical pub an estimated £1,100 next year.

    Downing Street says the tax cut, which will cost around £100 million a year, will be funded by a review of tax reliefs currently given to businesses which "do not make a positive contribution to local communities, such as vape shops".

    Andy Burnham speaking on Downing StreetEPA

    It adds the government will also "crack down" on businesses selling through online marketplaces which "do not comply with their tax obligations".

    The rates cut will not apply to the very largest live music venues, with more details of which businesses are eligible to be announced at the Budget in the autumn.

    Prime Minister Andy Burnham says the policy's a sign that his government will "back the businesses that people want to see in their communities" rather than standing by while "cherished venues have disappeared from our local high streets".

  4. Business rates to be cut by 20% for pubs, clubs and live music venues
    Breaking

    Business rates for pubs, clubs and live music venues will be cut by 20% across England from April next year, Downing Street has announced.

    It is the third policy announced in as many days since Andy Burnham became PM.

    This is a breaking story and we will bring you more shortly

    Beer barrels outside a pubEPA

  5. Burnham has previously talked about business rates changes

    Andy Burnham speaks into media microphones with a team of people behind himReuters

    Cuts to business rates was a topic Andy Burnham had been talking about during his campaign in the Makerfield by-election

    During Burnham's by-election campaign in Makerfield, his team released a policy document promising a cut in business rates for pubs and music venues by 20%.

    That would be paid for, they said, with higher taxes on out-of-town warehouses used by online retailers like Amazon.

    The prime minister has also previously said he wants to raise the threshold at which business rates kick in, which would take lots of small high street shops out of paying altogether.

    “Our high streets matter to me because they matter to the people who live here. I want to make sure that these family-owned businesses, as the heart and soul of this country, are protected and given the chance to thrive," he said at the time, adding that his party had so far "got this wrong".

    After winning the Makerfield by-election and in his first speech as Labour leader, Burnham pitted himself as a "pro-business" party leader - just as "I was a pro-business mayor of Greater Manchester" he said.

  6. What are business rates?

    Business rates are charged on most non-domestic properties such as shops, offices, pubs and holiday rental homes.

    Scotland and Northern Ireland use similar methods, but here's how it's worked out in England and Wales.

    The sum is property dependent and calculated using what's called a "rateable value," or in other words an estimate of the property's open market rental value by the Valuation Office.

    The local council takes that value and multiples it with a figure called the "multipler" to produce the final rate.

    What the multipler is also depends on the estimated value of the property - and if the rateable value is below £500,000 then there are different values according to the type of business too.

    Wales and the City of London have slightly different rules to the rest of England for calculating multipliers - but they too consider the type of property and its rateable value in order to produce the multiplier.

  7. Government announcement on support for hospitality industry expected shortly

    A man holds three glasses of beer in his hands, wearing a black quilted jacket.PA Media

    The government is expected to make an announcement on support for the hospitality industry shortly, likely in the form of an adjustment to business rates for pubs and music venues.

    It will be the third consecutive day of cost-saving measures announced by Andy Burnham's government, and follows yesterday's announcement that most bus fares in England will be capped at £2 from January.

    Tuesday saw the government cut VAT from household electricity bills from 1 October.

    Stay with us as we bring you more details.