Burnham says 20% business rates cut for English pubs 'a first step' - Published Pubs, social clubs and live music venues in England will be given a 20% cut to business rates from April, with new Prime Minister Andy Burnham calling it a "first step" to help the industry. It is his third policy announcement since entering No 10, and the government estimates the plan will save firms around £1,100 next year. With a cost of £100m, it will be funded by a review of tax relief on firms such as vape shops which "do not make a positive contribution to local communities", the government said.

Some hospitality firms welcomed the move but others in the industry, such as hotels and restaurants, questioned why the 20% cut would not extend to them. Speaking from a pub in Essex, Burnham said pubs in particular "need to know that the cavalry is coming". Pubs have now had two rounds of relief - a 15% cut in April and a further 20% which will come into force next year.

The business rates discount will not apply to the "very largest" live music venues. Details about which businesses are eligible will be announced at Chancellor John Healey's first Budget in the autumn. The cut is expected to benefit almost 32,000 venues.

The Treasury said nightclubs were not covered by the announcement, which is intended for social clubs - such as working men's clubs. A spokesperson said nightclubs play an important role in local communities and high streets. "That's why they already benefit from permanently lower business rates multipliers and our £4.3bn support package to limit bills rises, alongside capping corporation tax at 25%, cutting red tape and taking action on the cost of living to boost high streets," they said.

The BBC understands the government is continuing to look at the wider business rates system and how it can support the wider High Street. Under the current tax reliefs for pubs and live music venues, local authorities are left to decide which venues are eligible for business rates relief "where eligibility is unclear", but nightclubs are specifically excluded in that guidance. The BBC understands definitions of venues eligible for the upcoming cut will be similar to those in that guidance.

The Night Time Industries Association said earlier that it welcomed the announcement, but was seeking clarity on the eligibility for the scheme. Chief executive Mike Kill added: "We look forward to working constructively with government to ensure nightclubs are fully recognised within these measures." UK Hospitality's chief executive Allen Simpson said Burnham's plans are "a good start". But he added: "Neither hotels nor restaurants have had the help they need.

We've got to see a proper solution for the most overtaxed sector in the economy at this year's Budget." Iain Hoskins, who owns Ma Pub Group in Liverpool, told the BBC the relief would help "chip away" at rising costs but questioned how many venues would benefit. It could be "very meaningful", he said, but "as always, the devil is in the detail". His pubs have previously missed out on government business rates support, and "the increases were so huge last year that now we're sort of chipping away at some of those increases".