Nearly 32,000 hospitality businesses across England will receive a 20% discount on business rates, with ministers saying the move could save the average pub around £1,100 a year.
The tax break is the latest in a series of cost-of-living measures unveiled by Mr Burnham since entering Downing Street, following his decision to cut VAT on electricity bills and restore the £2 bus fare cap across England.
However, the biggest live music venues will not qualify for the new relief.
The Government said the tax cut will be funded by reviewing reliefs for businesses that “do not make a positive contribution to local communities”.
This includes some vape shops, alongside a crackdown on online marketplaces that fail to meet their UK tax obligations.
Mr Burnham has also previously pledged to increase taxes on large out-of-town distribution warehouses used by online retail giants to help fund support for town centres.
Announcing the plans, the Prime Minister said: “This government will back the businesses that people want to see in their communities.”
He added: “I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do.”
Mr Burnham described the announcement as only the beginning of wider reforms.
“What we’re announcing today is just the start as we work to bring back hope across the country.”
The Government has also confirmed it will examine wider reforms to the business rates system, including small business rates relief, when the Chancellor delivers the Autumn Budget.
Good news for the hospitality sector:
Andy Burnham is set to announce a 20% cut to business rates for pubs, bars, clubs and hospitality venues within days.
— James Melville 🚜 (@JamesMelville) July 21, 2026
Chancellor John Healey said pubs and entertainment venues play a vital role in local communities.
He said: “Pubs, clubs and live music venues are at the heart of communities across the UK.”
Mr Healey added: “We are determined to bring hope back, give businesses the support they need and generate growth in every postcode.”
While many operators welcomed the announcement, some questioned how widely the relief would apply.
Newly appointed Chancellor of the Exchequer John Healey (Image: Stefan Rousseau/PA Wire)
Iain Hoskins, who owns the Ma Pub Group in Liverpool, said only one of his five venues qualified for last year’s business rates discount.
He explained: “Only one of them got it because they didn’t have the word pub in their name.”
Mr Hoskins added: “They were a cafe bar, which was a posh pub, but they were a pub, you know, nonetheless.”
Despite that frustration, Hoskins said the extra relief would still make a difference.
“Twenty per cent isn’t an insignificant figure.”
But he warned that businesses are still paying far more than they did before recent increases.
“I don’t want to sound ungrateful, but the increases were so huge last year that now we’re sort of chipping away at some of those increases.”
He added: “We’re not actually getting better value than we had before.
“We’re still having to find extra money for these business rates.”
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