Pub giveaway 'is just beer money in face of £9billion rates rise'

By MARTIN BECKFORD, POLICY EDITOR and EMILY HAWKINS Published: 01:31, 24 July 2026 | Updated: 01:37, 24 July 2026 Andy Burnham's business rates cut for pubs, clubs and gig venues will be dwarfed by a looming £9billion stealth tax rise, the Tories have warned. The Prime Minister said yesterday he would knock 20 per cent off rates for hospitality firms next year, saving pubs £1,100 on average.  He said the £100million policy would be funded by slashing reliefs for gambling arcades and vape shops that 'don't add much to community life'. Announcing the move at The Hare Inn in Essex, Mr Burnham defended not extending it to struggling restaurants, cafes and hotels.  He said: 'Pubs need to know that the cavalry is coming. This is to me our heritage. It's working-class culture.' The British Beer and Pub Association said it was 'delighted' and the Greene King brewery said the move brought 'much-needed relief'.  But landlords said the cut – worth £3 a day – would not compensate for other costs Labour has imposed on them such as higher national insurance contributions.  Steve Perez, the founder of drinks firm Global Brands whose two hotels include a pub and a restaurant, said the cut was welcome but 'tiny', adding: 'This won't make any material difference to any pub.' Andy Burnham's business rates cut for pubs, clubs and gig venues will be dwarfed by a looming £9billion stealth tax rise, the Tories have warned (the PM is pictured at the Hare Inn) He said his rates bill rose 130 per cent in April, after botched attempts to help the sector by then prime minister Sir Keir Starmer and chancellor Rachel Reeves. Allen Simpson, head of trade association UKHospitality, said: 'While today's announcement will provide welcome support for pubs, clubs and live music venues, they only account for around a fifth of hospitality jobs. The rest of the sector now needs to see the same ambition.' Wahaca restaurant chairman Mark Selby said: 'Customers can't take any more pricing but we are forced to take on more and more costs. We employ more people than almost any other industry, yet we are hammered the most by taxes.  'VAT needs to be the bigger focus, especially when looking at what other EU countries have done for hospitality by reducing VAT.' And the Conservatives claimed Mr Burnham's cuts would not compensate for business rate rises introduced by Labour.  They published parliamentary answers showing the Government expects to rake in £37.6billion from business rates in 2029-30, £9.1billion more than at the time of the election. It comes after questions over how Mr Burnham will pay for his VAT cut to electricity bills and £2 bus fare cap.  Shadow Chancellor Sir Mel Stride said of Mr Burnham: 'Like all his promises so far, his plan for business rates is devoid of detail and represents yet another commitment for which the funding has not been set out. 'It pales in comparison to the £9billion Labour tax hike already under way.' And Tory business spokesman Andrew Griffith warned: 'As yet the Government has not been able to credibly explain how it will fund any one of its 'new' policies. 'That undoubtedly means more Labour tax rises that families and businesses across the country cannot afford.'