Burnham says 20% business rates cut for English pubs ‘a first step’

Andy Burnham’s proposed 20% business rates cut for English pubs is a temporary fix for an industry still reeling from years of mismanagement and neglect. The new prime minister’s policy announcement has been hailed as a “first step,” but it remains unclear whether it will be enough to prevent the inevitable collapse of many pubs.

The hospitality industry has suffered under successive governments’ short-sighted policies, leaving businesses struggling to stay afloat. A 15% business rates cut introduced earlier this year was a meager attempt to alleviate some pain, and it’s clear that more drastic action is needed. Burnham’s latest proposal will undoubtedly provide relief, but it’s a patchwork solution at best.

Pubs are being singled out for special treatment, raising questions about why other hospitality businesses – hotels and restaurants – aren’t receiving similar support. UK Hospitality’s Allen Simpson notes that neither sector has received the help they need, and it’s time the government recognizes this disparity. The industry’s chronic woes can’t be fixed with a simple rate cut; what’s needed is a fundamental overhaul of the business rates system.

The real issue isn’t just the size of the cut but who gets to decide which businesses are eligible for relief. The Treasury’s announcement that most nightclubs won’t qualify for the 20% discount raises concerns about inconsistent application of rules and regulations, with some sectors receiving preferential treatment while others struggle.

The government’s review of tax relief on firms like vape shops and gambling arcades is a distraction from the root problem. While it’s true that some businesses don’t contribute positively to local communities, targeting these specific industries won’t solve the issue. A more nuanced approach to business rates is needed, taking into account the unique challenges facing different sectors.

Burnham’s cost-of-living measures are being touted as bold attempts to alleviate household pressures but are little more than sticking plaster solutions. The 5% VAT cut on electricity bills will save households around £45 a year – a paltry sum considering rising costs of living. And looming global energy shortages threaten far-reaching consequences for businesses and consumers alike.

The Federation of Small Businesses is right to call this announcement a “downpayment” on future action, but it remains to be seen whether Burnham’s government will follow through on its promises. The 20% business rates cut is just the latest in a long line of half-measures; what’s needed now is real leadership and vision.

As the industry continues to struggle, one thing is clear: more needs to be done to support pubs and other hospitality businesses. Burnham’s “first step” may be a welcome gesture, but it’s only a beginning – and it’s time for him to take a long-overdue leap forward.