Speaking to reporters during a visit to a pub in Essex, Burnham said pubs in particular “need to know the cavalry is coming”, the BBC reported.
The move follows a number of commitments made by the now Prime Minister during his campaigning on the Makerfield by-election which saw him return to the commons following his role as Mayor of Manchester.
“Once pubs are gone, they don’t come back. So we’ve just got to signal what support when we can,” Burnham said, “that’s why I’ve made this early announcement.
“It could make the difference for a number of venues that are struggling, and it was right to confirm it quickly because, as I say, so much good happens bringing communities together.”
Cautionary responses
Responses to the news has been cautionary from the sector, with many operators pointing out that an average £1,100 saving on the tax bill was not going to make a huge difference, given the various tax and cost hikes foisted on the sector by Burnham’s predecessors.
JD Wetherspoon founder and chairman Tim Martin described the cut as a “move in the right direction” and implied that the Government recognised the pub sector was over-taxed.
He went on to urge the new Prime Minister to back the industry’s VAT’s The Problem campaign which was calling for a cut in VAT for hospitality to 10%.
Positive start
Fuller’s executive chairman Simon Emeny said the announcement was a “positive start”, but added the sector still needed wider reform.
He said: “This is a positive start and I look forward to seeing the full details of his proposal in due course.
“While this provides welcome respite for pubs up and down the country, this is not yet the total reform of business rates that we have been promised by successive administrations and we look forward to working with Government on the wider reform to create a proper, fair, and clear system of business taxes across all sectors.”
