The 20 per cent business rates cut for pubs can only be seen as the start of any turnaround
The new Prime Minister is acutely aware of the wrong turns that the previous Labour administration took under Sir Keir Starmer. As Mayor of Greater Manchester he will have heard representation from the business and civic leaders about the problems created by Labour’s fiscal policies.
That is why it is no surprise that Andy Burnham has rushed to cut business rates on pubs, clubs and live music venues.
The 20 per cent reduction is part of the new PM’s attempts to provide “breathing space” to the public and businesses amidst the cost of living squeeze.
This is undoubtedly a step in the right direction, after all the warnings that pubs, clubs and live music venues have sounded in recent months. However, there are question marks over the efficacy of such a tax cut.
Some in the hospitality industry will rightly point to the cost of taxation having already outstripped what Burnham’s Government is offering to slash.
Policy is also about intent and by setting out his stall early on with what may turn out only to be a tokenistic measure in the end, shows the electorate that Burnham at least understands the problems that Britain faces.
However, it will only buy a limited amount of goodwill. That is why meaningful business rates reform cannot come fast enough. Reform that must be designed with business owners.
This can only be seen as a start but the acknowledgement that Labour got it wrong in the first place is to be welcomed. Whether Burnham is really willing to help the hospitality industry turn the tide, will become once his 10-year plan is unveiled.