fbpx
x

The latest industry news to your inbox.

    

I'd like to hear about marketing opportunities

    

I accept IQ Magazine's Terms and Conditions and Privacy Policy

news

UK govt abolishes business rates for small venues

‘An exceptional step’: Some grassroots venues and other small businesses in the UK will not pay any business rates for the next year, the UK chancellor has announced

By Anna Grace on 11 Mar 2020

UK govt abolishes business rates for small venues

UK Chancellor of the Exchequer Rishi Sunak (cropped)


image © Chris McAndrew

Businesses with a rateable value of below £51,000 will not pay any business rates – the tax levied on non-domestic property in the UK – for the next year, in what comes as a boost to the country’s grassroots music sector.

UK chancellor Rishi Sunak announced the rates abolishment today (11 March) as part of the government’s budget for 2020, which focuses on how to ease the economic impact of the Covid-19 outbreak. The rates relief will run from April 2020 for twelve months.

Full business rates relief previously only applied to firms with a rateable value – the value used to determine payable business rates, based on size, location and other factors – of below £12,000.

“In our manifesto last year, the government promised to increase their business rates retail discount by 50%, but we can go further,” says the chancellor. “We are taking the exceptional step of abolishing business rates altogether.”

The tax cut, says Sunak, is worth over £1 billion and is set to save each business up to £25,000.

A review into the long-term future of business rates will be concluded by the autumn.

“We are taking the exceptional step of abolishing business rates altogether”

In 2017, a 4% hike in business rates saw the overheads paid by many small businesses across the UK skyrocket. Grassroots venues in particular have suffered, having remained exempt from the tax relief granted to other small retailers for years.

Venue operators across the UK celebrated a 50% cut in rates in January, calling it “a profound and positive step” for the sector.

That same month, iconic London music venue the 100 Club became the first venue in the country to receive full business rates relief, under a new scheme put forward by Westminster City Council.

The venue, which has played host to the Rolling Stones, Oasis and the Sex Pistols, has been on the brink of closure at least three times in the past decade, with a third of UK venues closing in the same time period.

Speaking at Futures Forum on Friday, Mumford & Sons’ Ben Lovett, who operates London venues Omeara and Lafayette, lamented the loss of many UK grassroots venues and stressed the importance of having venues of all sizes for artists to perform in.

Mark Davyd of the Music Venue Trust (MVT) comments: “Music Venue Trust very warmly welcomes additional measures announced by HM Government in the budget to tackle the developing crisis provoked by Covid-19. We are particularly pleased that alongside the additional cut to business rates, the challenges Covid-19 presents to the smallest grassroots music venues, many of whom are too small to be in the existing business rates system, will be addressed via the small business grant fund, providing grants of up to £3000 to manage the emerging negative impacts.

 “The coronavirus outbreak presents a new challenge for the live music industry and this welcome step will be a lifeline for some at this critical time”

“It remains the case that too many grassroots music venues in the UK have rateable valuations which are simply too high to benefit from either of these measures,” continues Davyd, “and those venues will need additional measures bringing forward to enable them to withstand this crisis.

“We also welcome the commitment to a review of business rates to be carried out this year, with the hope that this review will finally result in the creation of an accurate and relevant classification for grassroots music venues that will see an end to them being unfairly penalised in this outdated system.”

Acting UK Music CEO Tom Kiehl adds that the chancellor should “be hugely congratulated” for scrapping business rates.

“Music venues are the lifeblood of our industry,” continues Kiehl. “However, many are fighting for survival and need all the help they can get to remain open.

 “The coronavirus outbreak presents a new challenge for the live music industry and this welcome step will be a lifeline for some businesses at this critical time.

 “We ask the Government to constantly review financial support available to music businesses and employees in response to coronavirus and consider making further changes.”

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

FOLLOW IQ