Pubs, social clubs and live music venues across Luton are set to benefit from a 20 per cent cut in business rates from next April, with the town’s two Members of Parliament praising the new plans announced by Prime Minister Andy Burnham
The government says the tax cut will support nearly 32,000 venues across England, including around 3,000 across the East of England, with the typical pub expected to save around £1,100 during the next financial year.
The measure forms part of a wider package of cost of living and economic growth policies unveiled during Burnham’s first week in Downing Street, aimed at supporting local high streets and community venues.
Luton South MP Rachel Hopkins welcomed the announcement, saying venues across her constituency had struggled with rising costs in recent years.
She wrote in a blog on her website: “As part of a run of policies announced during his first week in 10 Downing Street aimed at cutting the cost of living and supporting economic growth, Andy Burnham has pledged to cut business rates bills for pubs, social clubs and live music venues by 20 per cent from April next year.
“In Luton South and South Bedfordshire and beyond, I’ve seen how the pubs, social clubs, and live music venues that form the backbone of our local high streets have struggled with business rates and rising costs.
“They are vital in sustaining united, thriving communities in places like ours, so I warmly welcome the Prime Minister’s commitment to give them the support they deserve.”
Luton North MP Sarah Owen also backed the plans, highlighting the role hospitality venues play in bringing communities together.
She wrote on social media: “Pubs & music venues in Luton North are so often hubs for people to come together.
“That’s why we’re starting our support for small businesses by cutting business rates for pubs, clubs and music venues in Luton North – to support the many great hospitality businesses and the communities they serve.”
Prime Minister Andy Burnham said the changes were intended to reverse the decline of community venues and encourage investment in town centres.
He 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.”
The government said the tax cuts will be funded by reviewing business rates relief for premises that do not make a positive contribution to local communities, including vape shops, as well as measures to tackle businesses selling through online marketplaces without meeting their tax obligations.
Chancellor 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.”
Ms Hopkins said the announcement was another step in the government’s wider efforts to reduce costs for households and businesses.
She said: “The newly announced tax cuts are set to benefit around 3,000 such venues across the East of England, saving the typical pub an estimated £1,100 in the next financial year and offering more certainty for businesses looking to invest, grow and create jobs.
“This announcement is just one element of this 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.”
The MP added that the business rates changes followed other measures announced during the Prime Minister’s first week in office, including the removal of VAT from domestic electricity bills and the return of the £2 bus fare cap, which she said demonstrated the government’s commitment to tackling the cost of living in Luton South and South Bedfordshire.
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