The move sends out good signals and while not wishing to bite the hand that feeds, or seem ungrateful, a saving of around £1k is not going to be the shot in the arm that is going to radically alter the fortunes of pub operators across the country.
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Reactions from the sector have been mixed, with many giving the discount a muted welcome while expressing the desire for more meaningful support that will make a difference.
First step
Burnham has gone on the record during an interview with media saying the discount is just the first step, but despite flagging support for a VAT cut during the campaign trail, he’s remained tight-lipped despite increasing pressure from the VAT’s the Problem campaign.
Many in the industry point to the fact that with surging food inflation, employment costs and energy spikes, a VAT cut is the simple lever that the Government could pull to help ease those pressures in the immediate term.
Tinkering around the edges of business rates is not the solution the sector needs, and while any reduction in cost is welcome, we need to see meaningful root and branch reform on the rates system - something the Government promised in its election manifesto but then failed to deliver, beyond yet further tinkering around the edges.
Meaningful change
The early signals from Burnham and his new Chancellor - a former pubs minister, none-the-less - are promising. Both politicians have a stronger feel and affinity for the pub sector, given their past experience, unlike their predecessors.
Hopefully that affinity will lead to more meaningful change over the coming weeks.
Burnham has said pubs in particular “need to know the cavalry is coming” - pubs will just be wishing that cavalry was on faster horses.
