The Government’s announcement of a 20% cut in business rates for pubs, clubs and smaller live music venues in England from April 2027 has been welcomed in joint statement by Somerset Chamber of Commerce and Visit Somerset, which represents the county’s tourism and leisure sectors.
But the two business organisations say the measures do not go far enough and are calling for wider reform to support businesses across all sectors facing ongoing cost pressures.
David Crew, Managing Director of Somerset Chamber of Commerce, and Giles Adams, Chair of Visit Somerset, said: “The announcement of a 20% reduction in business rates for pubs, clubs and live music venues is welcome recognition of the pressures facing those sectors. However, there are many other businesses across hospitality and the wider economy that continue to face significant cost challenges.
“It has been widely trailed in recent weeks that the new Prime Minister sees hospitality and venues as a priority, so in many ways this is a welcome but predictable move. And while this announcement is welcome, we must avoid resorting to headline-grabbing measures if we are serious about supporting a sustainable visitor economy. Businesses need meaningful, long-term reform that drives growth and investment.
“Businesses have navigated years of economic disruption, rising energy costs, inflationary pressures and wider global uncertainty. While targeted support is positive, the need for wider business rates reform remains.
“Here in Somerset, the visitor economy alone is worth £1.3 billion, accounts for around 7% of the local economy and supports approximately 24,000 full-time equivalent jobs. It is a vital sector for our county and one that requires much greater attention if it is to reach its full potential.
“This week’s announcement on removing VAT from domestic electricity bills has demonstrated that Government is prepared to look again at tax measures where there is a compelling economic case. A reduction in VAT for visitor economy businesses would be a genuinely transformative change for a sector that badly needs support and needs it urgently.
“Many firms continue to identify business rates as a growing concern, particularly in hospitality, manufacturing and transport. Any action to reduce that burden is welcome, but businesses will be looking for further detail on how the Government intends to deliver its wider commitment to reform the system.
“It is important that forthcoming changes, including the next revaluation, do not result in steep increases in bills for businesses in other sectors. Firms need a system that is simpler, fairer and easier to understand.
“This announcement is a step in the right direction, but businesses of all sizes will want to see a clear and comprehensive plan for business rates reform set out in the Autumn Budget.”
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