Burnley pub owners welcome news of 20 per cent business rate cut as 'shot in arm' for hospitality
Bar owners in Burnley have welcomed news they are to receive a cut in business rates as a long overdue ‘shot in the arm’ for hospitality.
The announcement that pubs, clubs and live music venues are to receive a 20 per cent cut in business rates was made by new Prime Minister Andy Burnham, who described the move as ‘the first steps to the cavalry being on the way.’
Madge Nawaz, a partner owner in two Burnley bars, Remedy and Penny Black, described the move as ‘finally something positive’ for bars and pubs that have been struggling for so long.
He said: “Reducing taxes for the hospitality sector is more than just a financial measure, it’s a lifeline for small businesses that have struggled for years through rising costs, economic uncertainty and shrinking margins. Burnley’s nightlife has changed so much in recent years and many venues have battled against rising costs and dwindling customers. It gives us hope that this new Prime Minister finally recognises this industry.
“Supporting local hospitality means protecting jobs and communities.”
Craig Smith, manager of The Swan Inn, described the move as a ‘good start’ but said he believed the only way to make a real difference was to cut VAT for hospitality, adding: “Even just five or 10 percent would save a lot of the struggling pubs and take the financial pressure off the rest.”
Justine Bedford, landlady of The Royal Dyche and a long time champion of securing a fairer deal for pubs, cautiously welcomed the announcement saying: “We don’t want to sound ungrateful as an industry, but we need more. We need a long term solution and the rateable value system needs looking at.”
Alison Leigh, landlady at The Crooked Billet in Worsthorne, said the cut would make a’ huge difference’ to a small business like hers.
She said: “.A bigger percentage would have obviously been better, in fact any help at all would be welcome. The big pub companies are aiming for a reduced rate in VAT next. If we all stick together to fight for this, who knows what the outcome will be?”
News that cafes and restaurants will not be included in the discount deal at this stage is a bitter pill for many venues.
Pino Cafasso, who owns Palazzo Italian restauant in Griimshaw Street said all hospitality venues should benefit from the cut adding: “Restaurants are closing everywhere but no help is granted to us, which is very unfair. I have a lot of friends in the industry who are struggling.”
Paul Earnshaw, the owner of Kiddy Kids play centre based at the former Kings Mill building, which includes sister venue KK’s Krazy Golf & Sports Bar, said the gesture had also come ‘a little too late’ for many venues.
He told the Express: “Bigger things need to happen for working class people to give them money to spend. Government policies keep people at home Monday to Friday and the recent weather situation is affecting all indoor venues, not just us.”