Andy Burnham cuts business rates by 20 per cent for pubs, clubs and music venues in latest giveaway

Andy Burnham has announced a 20 per cent cut in business rates for pubs, clubs and live music venues.

The 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.

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.

The Prime Minister had previously pledged to raise taxes on out-of-town warehouses for online giants such as Amazon to help pay for cuts to rates for hospitality firms.

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 - 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.'

The Government will look to set out further reform to the wider business rates system, including small business rates relief, at the Budget.

The Chancellor John 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.'

The policy is just the latest in a slew of measures announced by the new Prime Minister to help tackle the cost of living crisis.

Yesterday, Mr Burnham announced a £2 bus fare cap in England which would be paid for by 're-prioritising government funds'.

Mr Burnham had previously capped bus fares at £2 in Greater Manchester during his time as mayor.  

On Tuesday the PM laid plans to cut VAT on electrical bills which the government said could save the households around £45 a year. 

Meanwhile, Mr Burnham has made Scottish Labour leader Anas Sarwar a lord and minister in the Department for Business, Innovation, Science and Trade as part of a raft of ministerial appointments on Wednesday night.

Lord Sarwar was among the first to call for Sir Keir Starmer to stand down earlier this year.

Later on today, Mr Burnham will meet the leaders of Scotland and Wales for the first time since becoming Prime Minister when he travels to Glasgow.

Mr Burnham backs further devolution, but both First Minister of Scotland John Swinney and the First Minister of Wales Rhun ap Iorwerth, want independence for their countries.

The former Manchester mayor said he will not be considering any referendums and is instead focused on delivering growth.

Ahead of the meetings, the Prime Minister said: 'When I say we need good growth in every postcode, I mean every postcode across the whole of the UK. Every place and every person matters.

'I'm not focused on point scoring or discussing constitutional changes like referendums, I want practical measures to help people live well and bring back hope.'

The First Minister of Wales said: 'I look forward to meeting the Prime Minister in Glasgow today.

'It is fitting that we meet in Scotland, as it underlines Wales's case for parity of powers and a fairer funding model that reflects our needs.

'Number 10 North must not become just Whitehall with a different postcode.

'I agree wholeheartedly on empowering communities – it's at the heart of my politics – but decisions affecting Wales should be made in Wales, and it is for the Welsh Government and our Senedd to work with the people of Wales on how power is exercised and shared within our nation.

'At a time when families are still feeling the pressure of the cost of living, I am also keen to discuss how our governments can work together as equal partners to deliver improvements to the lives of people in Wales.'

The Prime Minister will also be at the opening ceremony of the 2026 Commonwealth Games on Thursday.

He is expected to meet with the First Minister and Deputy First Minister of Northern Ireland on his tour of the United Kingdom in August, where he will visit places across England, Scotland, Wales and Northern Ireland.