Business rate cuts 'step in the right direction'

Publicans in Coventry have said government plans for a 20% cut in business rates are a "step in the right direction," but more support for the sector is needed.

Prime Minister Andy Burnham said his government would "back the businesses that people want to see in their communities" by introducing from April a cut for not only pubs but social clubs and live music venues.

Kevin Murphy from Murphy's Bar in Leamington Spa welcomed the announcement while adding there was lots more that could be done, such as reducing VAT in pubs, especially on food.

"If I sold my big breakfast for a tenner... two pound is VAT," he said. "[A reduction] would be another great move if [the PM] did look into that."

Murphy said his bills and running costs went up "really high" a few years ago, describing it as a "big killer" on his finances.

"My monthly bill went to about £1,500 to nearly £3,000," he explained.

"It's come down a bit now but it's still nowhere near the £1,500 I was paying."

The prime minister said the plans were a "first step" to help businesses and that pubs in particular "need to know that the cavalry is coming".

Melissa Rhule, assistant manager of Holyhead Pub in Coventry, said the announcement was "music to our ears".

"It's been a struggle to keep people in and keep people coming back," she said. "If there's not a reason for them to come, they're not going to come with prices and everything going higher.

"It's nice to see that we're going to get something to keep the people in the pub."

The policy is set to cost about £100m and would be funded by a review of tax reliefs given to firms "such as vape shops", the government said on Thursday.

Rhule said the 20% cut "doesn't sound very much" but would give people hope.

"We will see how he integrates that and how it goes forward, because music's more expensive now, beer's more expensive now, everything's more expensive," she said.

West Midlands Mayor Richard Parker welcomed the announcement saying the prime minister had captured "issues that come up regularly with me".

"There is more to do," he added, "but it shows and demonstrates a statement of intent and a recognition that the government needs to do more to support the everyday economy.

"For some businesses it will make a big difference."

He said he would meet the prime minister in the coming days.

"I hope this is just the first set of announcements that will help businesses on the high street and I hope he will make further announcements over the coming months," Parker added.

For Paul Curtis, the announcement has a very real context against which help for pubs must be viewed.

He opened the Stag Pub in Coventry in November 2024, after the venue had been closed for five years.

"We had to build the community, we had to build the customers," he said. "People slowly started coming in."

But he told BBC CWR that more people were visiting due to the closure of other pubs nearby, such as The Grapes, The Coachmaker and The Motor.

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