Announced by the Prime Minister, pubs, clubs and live music venues in Plymouth are set to receive a 20% cut to their business rates bills.
This is fantastic news. Pubs, social clubs and live music venues form the backbone of our local high streets and really matter to us here in Plymouth. For too long, these vital community spaces have faced mounting pressures, often replaced by boarded-up windows and ‘for sale’ signs.
Businesses have been clear about the strain the current system creates, as I heard at my recent hospitality roundtable. That is why the Labour Government is taking direct action to bring hope back, provide targeted support to valued community assets, and generate growth in every postcode.
Cutting Costs and Supporting Local High Streets
Nationally, these new business rate cuts will benefit nearly 32,000 venues, saving the typical pub an estimated £1,100 in the next financial year. This provides much-needed certainty for local businesses looking to invest, grow, and create jobs.
This cut is part of a broader package of measures announced to help lower costs for people and businesses across our city- including scrapping VAT on electricity bills and extending the £2 bus fare cap.
Fairly Funded Reforms
Today’s changes will be fully funded through fairer tax rules, including:
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Reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.
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Cracking down on online tax avoidance by making online marketplaces responsible for non-compliant sellers who dodge their tax obligations, ensuring they no longer hold an unfair advantage over brick-and-mortar high street businesses. Subject to consultation, revenues raised will be reinvested directly into improving the business rates system.
Following my recent hospitality roundtable I wrote to the Chancellor on behalf of the businesses that attended, some of whom are not included in this week’s measures and I am looking forward to hearing from him about the ways that he will continue to engage with stakeholders across a range of sectors, including hospitality, as he considers the future of the business rates system and options for supporting businesses through it.