Starting from April next year, pubs, bars, clubs, and venues hosting live music events will pay 20% less in business tax under a new measure announced by the British government.
Authorities estimate that around 32,000 hospitality businesses will benefit from the reduction. For an average pub, the savings are expected to reach approximately £1,100 per year, while the scheme will cost the state budget around £100 million annually.
Funding for the initiative will come through a review of tax reliefs granted to certain activities classified as “anti-social,” including vape shops. The government also announced stronger controls on businesses selling products through online platforms while avoiding tax obligations.
Prime Minister Andy Burnham said the support would focus on businesses that play an important role within local communities.
“I promised to protect pubs and high streets, which are the heart of our communities. This is only the beginning of the measures we will introduce,” he said.
The measure was announced as a large number of hospitality businesses continue to complain about a significant increase in operating costs. According to them, expenses have been worsened by higher employer social security contributions and increases in the minimum wage.
