Burnham to Cut Property Tax for Pubs and Music Venues

British Prime Minister Andy Burnham announced that starting in April, he will cut the property tax for pubs, clubs and venues featuring live music by 20%. This is already the third measure to support households and businesses since he took office earlier this week.

Following the elimination of the tax on household electricity bills and the capping of bus fares, Burnham aims to support businesses that, in his view, are an integral part of local communities. The tax cut will save a typical pub approximately £1,100 ($1,470) next year and will affect nearly 32,000 establishments.

The measure will cost the government approximately £100m ($134m) annually. It will be funded by reassessing tax breaks for businesses that, according to the government, do not contribute to local communities, such as e-cigarette shops, and by tightening tax collection from sellers on online marketplaces.

Finance Minister John Healey emphasized that the government wants to continue reducing costs for businesses and restore confidence in the business sector. He said that high taxes, energy costs and rising wages have limited both investment and business growth.

At the same time, he confirmed that the government will adhere to fiscal rules stipulating that current expenditure must be financed by revenue and that public debt must gradually decline relative to economic output.

(Reuters, bak)