Key events
Reynolds also said she would welcome Gary Lineker and other UK-based millionaires increasing the amount they pay into public coffers after they called for a wealth tax.
But she would not be drawn into whether Andy Burnham’s government will consider what they are asking for. She said:
Well, look, it’s day four of this new government, and obviously any major tax changes would be announced at a budget.
I welcome the fact that people of good means are saying that they want to pay more. They can pay more.
There is a link on gov.uk, but look, we have to look at tax policy in the round, and we only make major tax announcements at budgets.
Burnham’s business rate cuts are ‘fully funded’, says Treasury chief executive
Chief secretary to the Treasury Emma Reynolds has insisted plans to cut business rates for hospitality venues are fully funded when put to her that the changes to rules for vape shops and online marketplaces due to pay for them are described as being in review and consultation.
She told Sky News:
This is fully funded, and it will be funded in a couple of major ways. Firstly, by looking at business rate reliefs on businesses that cause social harm, such as vape shops, and secondly by cracking down on those online businesses who are not paying VAT.
She added:
I am confident as chief secretary, having looked at the numbers, and we will set out the numbers in more detail at the budget, that we will fund this announcement in the ways that I’ve just mentioned.
There may be additional measures that we look at as well, but it is those two principal ways that we’re going to fund this business rate relief.
Iain Hoskins, owner of Ma Pub Group in Liverpool, said that an extra 20% relief on business rates would go some way to “chipping away” at the rising cost but cast doubt on how many venues would be covered by the change.
He told BBC Radio 4’s Today programme:
The worry has been, obviously, in recent years, I mean, when our venues from last year to this current year got revalued, we saw increases of between 100% and 150% on the rates that we pay.
So that just goes to show how much they went up by. And while 20% – particularly if that 20% is on top of the 15% and other help that’s there – that can be very meaningful for businesses, independent businesses such as mine; I don’t want to sound ungrateful, but the increases were so huge last year that now we’re sort of chipping away at some of those increases.
He added:
We’re not actually … getting better value than we had before. We’re still having to find extra money for these business rates. But you know, it is a relief that actually some of that is mitigated quickly. 20% isn’t an insignificant figure.
Andy Burnham said it was time to support vanishing “cherished local spaces” with his business rates reduction.
The prime minister wrote on X:
I’m giving thousands of pubs, clubs and music venues a 20% cut in business rates.
I won’t stand by while these cherished local spaces disappear, replaced by boarded-up windows and ‘For Sale’ signs.
They’re the heart of our communities and it’s time we backed them.
Burnham cuts business rates for pubs, clubs and music venues in England by 20%
Good morning and welcome to the UK politics live blog.
Andy Burnham will cut business rate bills for pubs, clubs and live music venues in England by 20% from next April.
It is the latest announcement from the new prime minister to support local high streets – his latest measure to tackle costs for working people and communities.
Burnham said the £100m package would be fully funded including through reviewing reliefs for businesses that do not make a positive contribution to communities, such as vape shops. He said:
For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do.
The cut will benefit nearly 32,000 pubs, clubs and live music venues, according to the government, saving the typical pub an estimated £1,100 in the next financial year. The support will be targeted so that the very largest live music venues are not included.
Hospitality groups are expected to welcome the plan, which they have argued will create much-needed certainty for businesses that want to invest, grow and create jobs, at a time of growing financial pressures.
Other cost of living announcements this week – capping bus fares at £2 and cutting VAT on electricity bills – have prompted questions about how they will be paid for, with the new administration under pressure to set out the detail of its proposals more fully.
Read the full story here:
In other developments:
The new chancellor, John Healey, said the government would return to its commitment to overhaul the wider business rates system, including small business rates relief, at the budget.
Ministers also plan to crack down on businesses that sell through online marketplaces but do not comply with their tax obligations, putting them at an unfair advantage over those that do, and is consulting on measures to make those marketplaces more responsible for this.
Burnham announced that the government would cut VAT on electricity bills, reducing them by an average of £45 a year from October. This would be funded, officials said, by his decision to scrap the digital ID scheme.
The prime minister also announced he would reduce the fare cap from £3 a journey to £2 next year, funded mainly by changing international climate donations into repayable loans.
Burnham is immersed in a deepening political row after ordering a review of plans for the early release of thousands of killers, rapists and sex offenders from prison in September.
Victims of crime have accused ministers of making “cheap jokes” about releasing prisoners early after Wes Streeting and Shabana Mahmood were caught on camera “ribbing” about the scheme.
Scottish Labour’s rivals in Holyrood have slammed Anas Sarwar’s shock decision to resign as leader to sit in Andy Burnham’s new government, calling him a “chancer” and accusing him of lying to voters.
The Conservatives have asked HMRC to investigate whether Nigel Farage should have paid tax on the £5m gift he received from the crypto billionaire Christopher Harborne.
