Shropshire businesses give cautious welcome for Andy Burnham's rates relief

Pubs, nightclubs and music venues are set to receive a further boost in business rates relief but Shropshire landlords warn that it might not make much difference.

A cut worth 15 per cent commenced in April and now new Prime Minister Andy Burnham - a vocal advocate for the hospitality industry - has announced an additional 20 per cent relief on top of this.

It will begin for venues in England from April 2027 but cafés, restaurants and hotels have missed out again. The Government says it will look to set out further reform to the wider business rates system, including small business rates relief, at the Budget.

The pub industry has long since highlighted that it is battling against rising energy costs, higher wages and taxes and a fight to draw in the punters.

This new 20 per cent discount will apply to nearly 32,000 hospitality businesses and is expected to save a typical pub some £1,100 annually but will not be available to the very largest live music venues.

It will cost around £100 million a year. The overhaul of business rates will be funded through a review of reliefs for businesses that "do not make a positive contribution to local communities" such as vape shops and a crackdown on online marketplaces that do not comply with tax obligations, No 10 said.

Scott Adams owns and runs Firefly in Oakengates, a music and private hire venue popular for birthday parties and other events.

He told the Star he welcomed any relief on business rates but the benefit to a venue like his would be "in the hundreds" only.

"I don't know whether it will make too much difference as the struggle is monumental at the moment but that's also not a complaint if it means the government is starting to look at small business," he said.

Sign up for our email newsletters here

"What I've felt is that, ever since Labour came in, the burden has gone onto the shoulders of small businesses such as National Insurance and minimum wage going up. Small businesses create a lot of employment but I've had to take a step back from taking on extra staff because it's just not feasible.

"We've noticed this year that people are booking less and also music promoters are struggling more to sell tickets - it affects everyone layered into the industry, not just the actual venues.

"Our biggest expenses have come from the fact that everything has gone up, products I'm buying have pretty much doubled since the pandemic.

"These little things from the government are headline grabbing and maybe they make a difference to big venues with huge bills but to small venues like ours, they won't make much of a difference."

"Since Andy Burnham came in, there has been a lot of talk about supporting small businesses which I have not really felt over the past 12 to 18 months so anything to bring attention back onto the fact we bring money in and create employment and that we actually need support."

Ollie Parry owns The Salopian Bar, a popular live music and sports pub in Shrewsbury town centre.

He said this latest announcement had left him confused and was expecting to hear more details about how this and any possible future cuts might work in the Budget later this year.

"They've announced this, it's great news for the industry but until we get to the Budget, we don't know how it's going to be set out. At the moment, nothing is changing, we're still getting 15 per cent rates relief.

"To his credit, Andy Burnham has always campaigned for pubs and spoken about business rates and actually suggested scrapping them and bringing in a new system one day.

"In three years' time, there will be no rate relief. If they got rid of that step system to bring it down gradually now then some pubs would just go."

In recent weeks, high-end Shrewsbury restaurant Rhubarb at Drapers Hall has announced it is shutting while nearby House of the Rising Sun in Butcher Row now has new owners after it closed.

Mr Parry added: "I think it's harsh that cafes, restaurants and hotels miss out. Hospitality as a whole is struggling as places are shutting.

"Shrewsbury has recently lost some of its best hospitality venues. These are successful and have been around for years and this is just in Shrewsbury. If the best operators here are shutting, then the others must be struggling across the country.

"It's not fair. Thanks for the 20 per cent for pubs but it should be the whole of hospitality."

Mr Burnham said: "This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets and that's what we will do.

"What we're announcing is just the start as we work to bring back hope across the country."