A HENLEY-IN-ARDEN pub owner has cautiously welcomed a reduction to business rates.
In his first week as Prime Minister Andy Burnham announced a 20 per cent reduction in business rates for pubs, clubs and live music venues from April.
The Government says the new business rate cuts will benefit nearly 32,000 pubs, clubs and live music venues, saving the typical pub an estimated £1,100 in the next financial year, providing much-needed certainty for businesses looking to invest, grow and create jobs.
The news has received a mixed reaction across the country with some landlords saying the move is not enough and others hailing it a step in the right direction.
Emma Woodhouse, co-owner of The Fleur de Lys, said: “This announcement is a signal that the government is finally listening to the hospitality industry and whilst we can’t expect the entire sector to be fixed within the first week of this administration, we welcome the acknowledgment that the system needs an overhaul.
“In real terms, we’re losing two pubs a day and these measures won’t come into effect until April, by which time it will be too late for potentially 504 pubs that are at real risk of closure between now and then.
“We also appreciate that whilst £1,100 could help finance 80-plus hours of work, or be reinvested into businesses that have been putting plans for growth on hold, it will be unlikely to be reflected in the cost for the end user and that’s really where we would like to see a reduction in the cost of VAT to be more in line with Europe at 10 per cent and incentivise customers to come back out and contribute to the economy.
“It is also important that our colleagues in hotels, restaurants and cafes aren’t overlooked as we are all facing the same challenges within hospitality but, more broadly, this does signal that the government recognises the fault in the business rates system and hopefully further announcements will follow that will also benefit independent retail businesses and service providers like salons, too, in order to reduce the cost of doing business and rejuvenate our local communities and High Streets.”
Mr Burnham said: “For too long, governments have stood by while cherished venues have disappeared from our local high streets.
“This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.”
Richard Parker, West Midlands Mayor, said: “Our pubs, clubs and live music venues are the cultural lifeblood of our places, creating jobs and bringing life to our high streets and town centres.
“This cut to business rates is a welcome boost that will help businesses weather rising costs, protect jobs and continue investing in the places that keep our communities alive.”
