The government will cut business rates for pubs, clubs and live music venues by 20% from April.
The announcement was made on Thursday. It forms part of wider plans to reduce costs for businesses, support high streets and encourage investment.
Around 32,000 venues are expected to benefit. The government said a typical pub will save about £1,100 in the next financial year.
The changes will be fully funded, including through a review of business rates reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.
Prime minister Andy Burnham said the measures would help protect hospitality businesses and high streets after years of venue closures. He described the announcement as the first step in wider plans to support local communities.
Whilst the Chancellor of the Exchequer John Healey said pubs, clubs and live music venues play an important role in local communities and town centres. He said the rates cut was the first step towards wider business rates reform, with further measures to be announced at the Budget.
Allen Simpson, chief executive of UKHospitality, welcomed the announcement but said broader business rates reform was still needed.
He said: “This is good news and a welcome first step from a Government that understand the value of hospitality to jobs, growth and local communities.
“The Prime Minister is right to say this should be just the start. Restaurants are struggling just as much as pubs, while hotels are due to see their business rates bills increase by an average of 110%, the highest in the sector.”
