Business Rates Slashed by Additional 20%

Continuing his drive to build an economy that works for every postcode, the Prime Minister has taken action to cut business rates bills for pubs, social clubs and live music venues across Bury St Edmunds and Stowmarket from April next year.

For too long, the pubs, social clubs, and live music venues that form the backbone of local high streets have been replaced by boarded up windows and for sale signs.

Today’s announcement forms part of the Labour Government’s wider plan to drive good growth in every postcode by reducing the burden on local businesses, boosting investment on high streets and helping communities to thrive.

Nationally, new business rate cuts will benefit nearly 32,000 pubs, clubs and live music venues, saving the typical pub an estimated £1,100 in the next financial year, providing much-needed certainty for businesses looking to invest, grow and create jobs.

Today’s changes will be fully funded, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.

The Government will also crack down on businesses that sell through online marketplaces but do not comply with their tax obligations, putting them at an unfair advantage over businesses that play by the rules.

The Government is consulting on measures to make online marketplaces more responsible for preventing non-compliant sellers from avoiding their tax obligations and further detail will be set out in due course. Revenue raised from these reforms will be reinvested in improvements to the business rates system.

On the announcement, Nick Mackenzie, CEO of Greene King, said: “Pubs have long faced disproportionately higher business rates and today’s announcement is much needed relief. It’s hugely encouraging that the Prime Minister has chosen to prioritise our sector in his first few days in office, recognising our potential to support local economies and provide jobs in the heart of communities. We look forward to working with him over the weeks ahead to build on this support and deliver much-needed long-term reform on unfair taxation for the sector, including business rates, VAT and duty.”