Andy Burnham cuts business rates for hospitality, targets vape shops
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Andy Burnham is the mayor of Greater Manchester who became prime minister earlier this year, and he has been moving quickly to introduce new policies since taking office. One of these is a cut to business rates, a property-based tax that businesses pay to local authorities, specifically for pubs, clubs and live music venues in England, which have been closing at a steady rate in recent years.
To help pay for the cut, the government plans to reduce tax relief for businesses it considers a nuisance to local areas, with vape shops highlighted as a particular example, and to look more closely at whether sellers on online marketplaces are paying the tax they owe. This connects to an earlier plan from Burnham to introduce taxes on the large out-of-town warehouses used by companies such as Amazon.
The changes matter because business rates are often cited by pub, club and venue owners as a major cost pressure, and hospitality and night-time entertainment venues form a significant part of many local high streets and town centres. Full details of how the policy will work are expected to be set out in the budget.
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The strongest fair case each way — we don't pick a winner.
The case for
Supporters argue that hospitality venues are a vital part of local high streets and community life, and that a targeted business rates cut is a proportionate way to help pubs, clubs and live music venues survive against rising costs, online competition and years of closures. They welcome funding the measure by scaling back reliefs for vape shops and clamping down on online sellers who dodge tax obligations, seeing this as fairness rather than favouritism: businesses seen as damaging to town centres or gaining an unfair advantage through under-taxation should not enjoy the same support as venues that anchor community and cultural life. For advocates, the swift succession of announcements also signals a government genuinely listening to a sector that has long felt neglected.
The case against
Sceptics accept that hospitality faces real pressure but worry that this approach amounts to the state picking winners and losers through the tax system, based on subjective judgements about which businesses are valuable or "anti-social". They question why vape shops, a lawful and taxpaying industry that some credit with helping smokers quit, should be singled out to fund relief for a different sector, and note that the largest music venues will miss out entirely despite facing similar pressures. Critics would prefer a broader, principled reform of business rates or genuinely universal support, arguing that a series of rapid, headline-grabbing measures funded through narrowly targeted levies risks creating uncertainty for the businesses affected and setting a precedent for using tax policy to reward or punish particular trades rather than to raise revenue fairly.
More coverage
- The Independent — Andy Burnham cuts business rates for pubs, clubs and live music venues across England
- NME — Andy Burnham to cut tax for music venues, clubs and pubs in England and make vape shops pay more
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Originally published by The Guardian as “Andy Burnham to cut tax for pubs, clubs and live music in England and make vape shops pay more – business live”.