LONDON (dpa-AFX) - Continuing his drive to build an economy that works for every postcode, Britain's new Prime Minister Andy Burnham has taken action to cut business rates bills for pubs, social clubs and live music venues across England 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For too long, the pubs, social clubs, and live music venues that form the backbone of local high streets have been replaced by boarded up windows and for sale signs.
Thursday's announcement forms part of the 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.
New 20 percent business rate cuts will benefit nearly 32,000 pubs, clubs and live music venues, saving the typical pub an estimated 1,100 pounds in the next financial year, according to the Prime Minister's Office.
The 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, the Prime Minister's Office said in a press release.
This marks one of the big announcements that Burnham made in his first week in office, as part of a series of measures to cut costs for working people and communities, including electricity bill VAT relief and 2 pound bus fare cap.
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'.
The new government plans to reform the wider business rates system, including Small Business Rates Relief, at the Budget.
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