Andy Burnham shows support for pubs with 20% business rates reduction
Within days of entering no 10, Prime Minister Andy Burnham announced that pubs, social clubs and live music venues in England will be given a 20% cut to business rates from April 2027.
When this measure was announced, Andy Burnham said that pubs in particular “need to know that the cavalry is coming”, clearly signalling his support for the hospitality sector, which is currently facing record numbers of closures and business failures.
This announcement followed the 15% cut in business rates for pubs and music venues from April 2026, announced by the previous Chancellor Rachel Reeves.
However, these rates cuts do not apply to hotels and restaurants, many of which are also struggling to make a profit, and these businesses are also in desperate need of government support.
Furthermore, these rates cuts follow increases to rateable values in April 2026, which saw rates increase substantially for many businesses in the sector, as the previous covid rates relief was also withdrawn on the same date. As a result, many pub landlords see the 15% and 20% cuts as merely chipping away at the increases imposed in April, as opposed to a saving.
With the hospitality sector really struggling, and with record numbers of business failures, there’s a genuine fear that local pubs, restaurants and café’s will not be able to survive, without further help.
This has been widely covered in the media and you may have seen the VAT’s the Problem campaign, the petition spearheaded by celebrity chef Tom Kerridge, which is calling for a cut in the VAT rate for the sector to 10%, in line with the majority of other European countries that have lower VAT rates for hospitality businesses. This would provide more permanent help for the sector, bringing many businesses back into profit, and allowing them to invest and grow, as opposed to fighting for survival.
They are aiming for 1 million signatures, and are close to 400,000. Signing the petition is really quick and easy, so if you care about your local pub, restaurant or café staying open, you can sign it here .
We have many clients in the hospitality sector, and have seen most of these struggle since the reduced covid VAT rates came to an end in March 2022, indicating the pressure that this sector is under currently. We hope that Andy Burnham’s rates cut announcement back in July when he took office will lead to further support measures in new Chancellor John Healey’s Budget on 28 October 2026.
For further information on this matter please don’t hesitate to contact me.
- Andy Burnham announced a 20% business rates cut for pubs and music venues from April 2027
- He also indicated further support measures for the sector by saying “the cavalry is coming”
- This followed a 15% rates cut from April 2026, to alleviate increases in rateable values
- No rates relief was given to restaurants and hotels, but the whole hospitality sector is struggling
- We hope to see further support measures in the Budget next month
For more information, please contact me.
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