Thousands of pubs, social clubs and live music venues across England are set to benefit from lower business rates bills from April next year under new measures announced by the Government.
The changes form part of a wider strategy to support local economies, revitalise high streets and encourage investment in communities that have seen vital social and cultural venues disappear in recent years.
Government figures suggest that almost 32,000 venues will benefit from the new relief scheme, with the average pub expected to save around £1,100 during the next financial year. Ministers say the move will provide greater certainty for businesses, helping them to invest, expand and create employment opportunities in local areas.
The reforms are part of a broader ambition to deliver economic growth across every part of the country while ensuring that businesses which contribute positively to their communities receive targeted support.
Funding for the measures will come through a review of existing business rate reliefs, including those available to businesses deemed to make a limited contribution to local communities, such as vape shops.
Alongside the rates changes, the Government has announced plans to tackle tax avoidance by businesses selling goods through online marketplaces. Ministers argue that some traders gain an unfair advantage over compliant firms by failing to meet their tax obligations.
A consultation will be launched on proposals that would place greater responsibility on online marketplace operators to prevent non-compliant sellers from avoiding tax. Further details are expected to be published in due course.
Revenue generated from these reforms will be reinvested into improvements to the business rates system.
Prime Minister Andy Burnham said:
“For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
“This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.”
Chancellor of the Exchequer John Healey said:
“Pubs, clubs and live music venues are at the heart of communities across the UK. They help make a place what we love. 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.”
The Government says the announcement represents the first stage of a broader programme of business rates reform. Ministers have reaffirmed their commitment to reviewing the wider system, including Small Business Rates Relief, at the forthcoming Budget.
Image credit: iStock
