Salford’s pubs, clubs and live music venues are toasting Andy Burnham’s decision to cut their business rates by 20 per cent.
The new measure, announced by the Prime Minister on Thursday, is expected to save a typical pub some £1,100 annually.
Burnham said the policy, which will cost around £100 million a year, will be funded through a review of reliefs for businesses that “do not make a positive contribution to local communities” such as vape shops, as well as a crackdown on online marketplaces that do not comply with tax obligations.
The discount comes on top of a 15 per cent cut announced in January and will apply to around 32,000 hospitality businesses; it will come into force from April next year.
People behind boozers across the city told Salford Now that Burnham’s move to cut business rates is a step in the right direction.
James Bennett, one of the managers behind the popular Bee Orchid bar at Clippers Quay, said it was “nice to see the hospitality industry being looked after a little bit.”
The 31-year-old explained that “saving any amount of money for bars is great” and speculated the cuts will help boost the businesses’ drink stock and fund live music.
“The message in itself is great; it’s a very positive step in the right direction,” he added, looking out at the sun-soaked beer garden while pouring a pint of cider.
“Since Covid 19, the hospitality industry has really struggled. We try to support local businesses and every beer we have on tap is from a local brewery, but for an independent bar, every boost like this is welcome.”
Across the city, Roman Morgan, the upbeat assistant manager overseeing The Station Pub in Irlam, said the move to slash business rates was “great” but noted venues will be counting down the days until the cuts arrive with the hospitality industry in a “hard place.”
He said: “I know what Andy is like because he has been Greater Manchester mayor, he was very pushy with trying to save the hospitality industry.
“I had an idea he was going to cut rates because he has spoken about it before. It was good to see it come out in the news, but I wish the cuts were coming sooner, rather than April.”
Serving a pint of cask ale to a thirsty customer, Roman said he is cautiously optimistic about the cuts and hopes the government will be able to pay for them.
“They can say that they are doing good by getting rid of the tax, but they may then drive up production costs, or a certain company may have to charge us higher prices if the government have to make up taxes elsewhere.
“Everything is going up, so if they reduced it – that would be great. Go back to 2005 or 2004,” he said, laughing.
Meanwhile, as afternoon pub goers began to pack out The Oddfellows Arms in Eccles, landlady Rebecca Smith raised a glass to Burnham’s business rates relief.
“It will definitely relieve some pressure,” the 37-year-old said. “Hopefully the savings give us more flexibility to do stuff with our offers to attract more customers.
Rebecca outlined that the drinks prices at The Oddfellows Arms have been raised four times in the last year to account for rising costs and ever-tightening margins.
“I can imagine that’s taken a hit on customers not wanting to come out as much, so to be able to create more opportunities for them to be social and come back would be wonderful.
“It would be nice to introduce more offers so that it is mutually beneficial. Everyone has been hit with the price rises, so it would be nice for everyone to share the cuts.”
Customers said the pub on Church Street has been transformed from what they describe as a rough, trouble-hit venue into a family-friendly local since Rebecca took over 18 months ago.
Sat in their usual spot near the entrance, 79-year-old John Johnston and Donna Skeffington hailed the “fantastic” work Rebecca has done to turn around the blighted boozer and welcomed the relief she expects to get when the business rates cuts arrive.
“This is our favourite pub in Eccles. I meet John on a Wednesday and without this place we wouldn’t know where to go,” Donna said.
She added that the move cuts are “fantastic news” on the account that they give Rebecca a boost for making the pub “clean and welcoming.”
While Donna and John may be delighted to see their favourite pub be given a helping hand, other high street businesses like cafes and restaurants have questioned why Burnham did not go further and introduce a wider tax cut.
He defended limiting the cuts to business rates, calling the move an “important first step” to protect a piece of “our heritage.”
The new Prime Minister said: “This is a first step today, but it’s an important step. I made this commitment in the Makerfield by-election because we’re losing pubs. Pubs need to know that the cavalry is coming.
“You know, this is to me our heritage. It’s working-class culture. Once pubs are gone, they don’t come back. So we’ve just got to signal what support when we can. That’s why I’ve made this early announcement. This is a significant cut to the business rates that pubs and other venues pay.
“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, and when these places have gone they don’t come back, and we can’t afford to lose any more.”
