Businesses in Scotland will be demanding the Scottish government follows Andy Burnham’s decision to cut business rates for pubs, clubs and small live music venues by 20% across England from April next year.
Downing Street said it is expected to save a typical pub about £1,100 in tax. It will cost the Treasury about £100 million and will be funded by a review of tax reliefs currently granted to businesses which “do not make a positive contribution to local communities, such as vape shops”.
The Prime Minister said it was an indication that his government will “back the businesses that people want to see in their communities” rather than standing by while “cherished venues have disappeared from our local high streets”.
Mr Burnham will also “crack down” on businesses selling through online marketplaces which “do not comply with their tax obligations”.
The rates cut will not apply to the very largest live music venues, with more details of which businesses are eligible to be announced in John Healey’s first Budget in the autumn.
Mr Healey said: “Pubs, clubs and live music venues are at the heart of communities across the UK. 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.”
Mr Burnham has previously said he would impose higher taxes on out-of-town warehouses used by online retailers like Amazon.
The prime minister has also expressed a desire to raise the threshold at which business rates kick in, which would take lots of small high street shops out of paying altogether.
It has been pointed out that the rates cut, while welcome, will only trim the enormous rises that some venues have been forced to pay this year.
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