Plans to cut business rates for pubs, clubs and venues have been welcomed by businesses and hospitality leaders in Preston – though with a clear word of caution that the move will not be enough.
New Prime Minister Andy Burnham has announced plans to cut business rates by 20% in April 2027 as part of a package aimed at supporting high streets. The package will be funded by a review on relief for businesses deemed not to make a positive contribution – with vape shops in particular mentioned.
But while the move has been welcomed by Preston’s night time economy, the pub bosses Blog Preston spoke to were clear that more support is needed for the industry.
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Jonny Yates, who runs Winckley Ale House on Winckley Street, said that it was a positive first step but more is needed.
He told Blog Preston: “It is lovely – a little bit of help is nice. But it’s not happening until April and we’re on our arse now. It ain’t going to save anybody.
“The big one is VAT and this feels very much like a placative move rather than a well-considered one that will sort anything out.”
Cllr Peter Kelly is Cabinet Member for Communities and Social Justice and Night-time Economy at Preston City Council and a noted supporter of pubs and bars in the centre.
He told Blog Preston: “We’re very fortunate to have a strong independent sector in Preston which has sustained us through the closure of more mainstream bars.
“You can see from Burnham’s involvement in Manchester that they have a vibrant nighttime economy and that has probably influenced his decision. This is something that the hospitality industry has been crying out for so I’m very supportive of it.
“I think he’s extremely open to working with the nighttime economy and will be looking at further support.”
It has been suggested that VAT cuts for hospitality could be funded by increasing the tax burden on supermarkets – who are able to significantly undercut the pub trade with their prices.
Jonny added: “You do alright and you get a bit of money in the bank and then your warchest is gone instantly because of VAT.
“10% VAT rates would be incredible. Unfortunately, businesses are so screwed at the moment that I don’t even think we would be passing that on to customers. That would just be so we can survive.
“There are certain breweries I don’t buy from now just because you can get them in the supermarket for a fraction of what I can sell them for and make profit on. It’s nice that people can afford to drink at home but why are we penalising third spaces where people can gather?
“We should encourage people to come into their community to do it. Supermarkets are axing jobs despite making more profits whereas our team works harder every year and makes less money.”
Around twelve months ago, Mark Bentham was not paying business rates at all for the Beer Box on Station Road in Bamber Bridge. The 2026 revaluing of properties for business rates took his business over the threshold for the first time.
He said: “While cuts to rates are welcome, it doesn’t change the fact we’ll still be out of pocket more than we were a year ago.”
Mark Whittle, BID manager for Preston, said: “Our hospitality venues are far more than just places to grab a bite to eat or a refreshing drink, they’re considerable employers, community hubs and an integral part of Preston’s economy.
“UK hospitality contributes around £54 billion in tax receipts to the treasury, which is a significant sum. Any proactive measures that ease the cost burden on operators is to be welcomed, especially at a time when many venues continue to face wider financial pressures.
“We’re confident that these savings will go some way to help businesses invest in their premises, protect vital jobs and continue providing spaces that bring people together, keeping our high streets vibrant and inviting.”
