‘A small snippet’: what pubs make of Burnham’s £100m rates giveaway
Summary
Prime Minister Andy Burnham has introduced a policy to cut business rates by 20% for pubs, clubs, and live music venues, costing £100 million. Pub owners say the saving helps but is small compared to other costs they face, such as VAT, staff wages, and utilities, which make running their businesses expensive.Key Facts
- Andy Burnham’s policy reduces business rates by 20% for pubs, clubs, and live music venues.
- The policy aims to support high street businesses and will cost the government £100 million.
- Business rates account for only a small part of the cost of running a pub, about 16p on a typical pie and pint.
- Other major costs for pubs include VAT (value-added tax), staff wages, taxes, and utility bills.
- Some pub owners say the rates cut is helpful but too small to stop many pubs closing.
- A typical pub with £1 million turnover might pay around £5,000 in business rates, so the cut could save about £1,000.
- Hospitality businesses face increasing costs like higher minimum wage and national insurance under the Labour government.
- Pub owners and consultants want bigger tax cuts, like lowering VAT from 20% to 10%, to better support their businesses.
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