Street venue welcomes rates cut but calls for VAT action

By Laura Linham 29th Jul 2026

Local News by Laura Linham 1 hour ago

The owner of The Loft in Street has welcomed plans to cut business rates for pubs and live music venues but warned that the hospitality industry still needs substantially more help.

Prime Minister Andy Burnham announced that pubs, social clubs and eligible live music venues in England will receive a 20% reduction in their business rates bills from April 2027.

The Government estimates that the measure will support nearly 32,000 venues and save a typical pub around £1,100 during the next financial year.

It will be added to the 15% business rates relief announced for pubs and live music venues in January.

Mark Tobin, owner of The Loft in Street, said the announcement was a step in the right direction after a sharp increase in the rates charged on his own premises.

He said: "From my perspective this is a very welcome relief, any discount is of course a benefit.

"With the business rates for my property rising by over 100% since the 1st April 2023 the margins are currently tighter than ever.

"I still stand on my soap box to anyone that will listen to state that there also needs to be a significant discount of VAT to the hospitality sector. The UK has one of the highest VAT rates in Europe for hospitality.

"This first move by our new Prime Minister is certainly a step in the right direction however more needs to be done for the sector….. a lot more. Hopefully this is just the tip of the iceberg and we can expect a raft of positive relief in the coming months."

The Government said the £100 million annual cost of the relief would be funded partly through a review of support given to businesses such as vape shops.

It is also proposing tighter enforcement against sellers using online marketplaces without meeting their tax obligations.

The announcement was welcomed by hospitality industry representatives, although there have been calls for support to be extended to restaurants, hotels and other businesses which will not benefit from the discount.

UKHospitality said the Prime Minister's enthusiasm for the sector had "survived his trip down the M1", but urged the Government to deliver wider reform.