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СпутникиРНSpaceXРоскосмосNASAWhilst it's been deemed a 'breath of fresh air', there's also fears it may be a bit of a 'gung-ho' approach
In the months before Andy Burnham became Prime Minister, he vowed to cut business rates for pubs and live music venues should he get the top role. On his fourth day at Number 10, he announced exactly that.
On Thursday (July 23), it was revealed that rates for nearly 32,000 hospitality businesses across the country would be slashed - by 20 per cent - from April next year as part of Mr Burnham's promise to 'protect pubs and local high streets'.
It follows the 5p cut in rates announced in Rachel Reeves' 2025 Budget and will come on top of the 15 per cent relief announced in January. It's estimated the move, which will cost around £100m annually, will save a typical pub around £1,100 a year.
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Sacha Lord, Greater Manchester's night time economy adviser from 2018 until last year, described the announcement as 'incredible news' for businesses, which have left 'so worried and so slammed over the last few years' due to increased costs and pressures.
"It's a breath of fresh air," Mr Lord told the Manchester Evening News today. "The average pub is going to be in the region of £1,100 better off but I think, more than anything, it's going to give people a bit of hope.
"People are starting to feel a bit more positive and that there is someone in power now that understands our sector.
"Andy kept his word. I was with him two weeks ago in Makerfield and he told me how he fully understood that pubs are not just about a pint, how they are important for social cohesion and knew that's why we need to save them. He just gets it and I think that this is just the start of what's to come."
Neil Burke, who runs the Black Friar in Salford and the Horse & Jockey in Chorlton, said the cuts on business rates - 'basically council tax for businesses' - are a welcome starting point and will give operators a little 'breathing room'.
"Every little helps, for sure," he said. "It's a great start, it's significant. Andy said he was going to look after hospitality and that it was one of his focuses - so good on him because he's been straight in there and done something."
Charlotte Heyes, who runs Nell's pizzeria and bar across six sites in Greater Manchester, said: "It's something, which is important. Considering it's come in the first few days of his role as Prime Minister, it signals to a lot of people his intent, it signals he is listening to what businesses are saying."
William Lees-Jones, managing director of JW Lees - which runs more than 150 pubs across the north west and North Wales - echoed tee sentiments that the cut on business rates is a 'start' and applauded Mr Burnham for making lots of 'really positive' announcements.
"I do very much see it as the sector being taken seriously by the government," Mr Lees-Jones said. "It's a positive thing and could see us heading in the right direction.
"It's a good thing to see that UK businesses and UK jobs are being taken seriously. What he's announcing right now - the cost of buses, VAT on electricity and business rates - are all things that can be fundamental to how we live.
"A bit of money saved in every pub has got to be good news, and anything that’s supportive of that is something we've got to be grateful for."
Mr Burke said the relief ultimately won't lead to any drops on the price of a pint or a roast dinner anytime soon. "That's what we need VAT reductions for," he added.
"I don't want to be sceptical or negative in any way, but there is a slight concern about what this will mean for those much-needed cuts to VAT and whether that will be forgotten about now. Reducing VAT is still the biggest impact that is going to happen for us.
"If we were to cut VAT, prices would be able to be reduced a bit and that would then bring more people out to the pub. I see that as more of a two-way street for everyone."
JW Lees' boss Mr Lees-Jones recalled comments Mr Burnham made in 2024, in which he said he would 'fight' for hospitality amidst calls for a 10 per cent cut on VAT. Chef Tom Kerridge is also spearheading a campaign urging VAT for hospitality to be reduced by 20 per cent.
"Ireland has just permanently reduced VAT," Mr Lees-Jones said of the country's drop of VAT for food-led hospitality businesses from 13.9 per cent to 9pc at the start of the month.
"We've seen it done there. It's a good way of rebalancing the economy after having so much thrown at us."
The government said the cuts to business rates will be funded through a review of reliefs for businesses that 'do not make a positive contribution to local communities', such as vape shops, and a crackdown on online marketplaces that do not comply with tax obligations.
It follows the Prime Minister's previous pledge to raise taxes on out-of-town warehouses for online giants to help pay for cuts to rates for hospitality firms.
"I do think impacting vape shops is a good idea - there should be the same tax on vapes as there are for cigarettes," Mr Burke added.
"It might help make vapes more difficult to buy. And I also think that some of the very big companies often don’t pay their fair share, so I think that targeting those warehouses is also a good route.
"But there is a slight part of me that thinks it's a bit of a gung-ho, off-the-cuff approach. I would have thought it's something that would have taken a few weeks or months to properly get to grips with, and that does concern me about how they will do this properly."
It's something a number of Conservatives have also questioned, demanding the exact details of how it will fund the policy. A key Labour minister has also suggested that ‘additional measures' may also be announced to support the move.
"I can imagine cutting business rates was something he was able to do quite quickly without having much of a bigger knock-on effect on everything else," Mr Burke, of the Black Friar, added. "Especially as business rates were already reduced to that rate a year ago before going up again.
"It might be a quick win to get over the line and I appreciate that, but more support does need to happen. It's a good indication that the Prime Minister is taking us seriously. I just hope it's not instead of other things. I do feel like VAT would be a much bigger conversation. But hopefully they are things already in the pipeline.
"Ultimately, we do all know from his background that he's in favour of hospitality - he has championed the sector massively and he understands the importance of it. He doesn’t seem like the kind of man who would shout about things that he can’t achieve, so there is a bit of confidence there."
Nell's boss Mrs Heyes said she eagerly awaits news about what else can be done - especially for the wider hospitality scene outside of bars, clubs and music venues. "It would be unrealistic for everybody to expect a full package of support to be announced on his fourth day as Prime Minister," she added.
"The fact that restaurants aren't included is an issue. We hope there will be a more comprehensive package to support the high street and wider hospitality sector that follows. Hopefully this is just the start, we are all eagerly awaiting what else will be done to support us."
Earlier today, Mr Burnham was asked about why he limited cuts to business rates to certain hospitality venues, and he said he needed to let pubs 'know that the cavalry is coming', adding that it was a significant 'first step'.
He said: "This is, to me, our heritage. It's working class culture. Once pubs are gone, they don't come back. So we,ve just got to signal what support when we can. That's why I've made this early announcement. This is a significant cut to the business rates that pubs and other venues pay.
“It could make the difference for a number of venues that are struggling, and it was right to confirm it quickly because, as I say, so much good happens bringing communities together, and when these places have gone they don’t come back, and we can’t afford to lose any more.”
Mr Lord, who attended Downing Street for Burnham's appointment as Prime Minister on Monday, said he has heard lots of praise for the announcements Burnham has made this week.
"I've spoken to politicians all over who have said fair play with regards to what he is doing," he added. "And this isn't just about hospitality - it's about what he's doing all over right now. This is someone who is actually keeping his promise."
Asked if he thinks there is any likelihood of VAT relief for hospitality, Lord adds: "I am confident there are going to be some more further announcements coming this way. I've had good conversations with him about it. We're going to see some nice changes in the next few months, I really do believe it."