The Association of Convenience Stores (ACS), the British Retailers Association (Bira) and others have been swift to react to the Prime Minister’s plans to support high street businesses that have a positive impact on their communities through the business rates system, announced this morning.
The new Prime Minister Andy Burnham - who is only four days into the role - announced plans to cut VAT for entertainment venues and hospitality businesses later this year and into 2027.
Speaking to the BBC, treasury secretary, Emma Reynolds, also hinted more business rates cuts might be being considered, saying more will be looked at in the lead up to the budget.
In his announcement, the Prime Minister set out the first of the Government’s plans to provide a 20% rates discount to pubs, clubs and live music venues, followed by a wider restructuring of the rates system to support businesses that make a positive difference on high streets and better account for online retailers to ensure they pay their fair share.
The changes will partly be funded by reducing support for ‘anti-social’ businesses, with vape shops particularly singled out by the Prime Minister.
Burnham said: “For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
“This government will back the businesses that people want to see in their communities. What we’re announcing today is just the start as we work to bring back hope across the country.”
Convenience stores themselves are home to a wide range of services, with one in five hosting a Post Office and 41% providing access to cash for local people.
Responding to the news, ACS chief executive, Ed Woodall (left) said: “We welcome the Prime Minister’s focus on supporting businesses that make a positive difference to the communities where they trade.
“Convenience stores must be right at the heart of these proposals, as many have been hit hard by rates increases and need support to be able to invest and grow.
“We’ve been campaigning throughout the year for the Government to take action in the Budget to reform the business rates system and provide further support for local shops and will continue to engage with policymakers on the essential role that convenience stores play in their communities.”
However, The British Independent Retailers Association (Bira), which works with over 6,000 independent retailers across the UK, said other high street businesses have been left behind.
Downing Street said it could save a typical pub an estimated £1,100 in tax next year. Nearly 32,000 venues will benefit. The cut is expected to cost around £100m.
Andrew Goodacre, CEO of Bira, said: “Once again pubs, clubs and music venues are being given special treatment on business rates.
“What about the rest of the high street, when other businesses have seen a 15% increase this year?”
“This follows the discount they were given after last year’s disastrous changes to the system. My question is straightforward. What about the rest of the high street, when other businesses have seen a 15% increase this year and their business rates bill more than double since 2024? If the Prime Minister is serious about revitalising high streets, he cannot only support pubs in this way.
“Seventeen thousand shops closed in 2025, plus many thousands of jobs lost, and that number will keep rising if these businesses continue to be overlooked.”
Also commenting on today’s announcement, the Fed’s national president, Hemanshu Patel (right), urged Burnham not to forget smaller stores. He said the Fed’s members’ businesses are often the first place people visit in the morning and the last place they can rely on at night.
“We provide far more than just groceries - banking, parcel services, bill payments, home news delivery, Post Office services and, for many people, a friendly face and someone to look out for them,” Patel said.
“However, the cost pressures just keep coming. National Insurance, wage increases, energy bills and business rates are all taking their toll, yet independent retailers don’t seem to get the same attention as other sectors.”
Patel’s comments came just days after he wrote to the new Prime Minister, congratulating him on his appointment but highlighting the need for businesses rate costs to be limited for retailers.
In another response to the news, Michelle Ovens CBE, CEO and founder of Small Business Britain, said: “It’s encouraging to see the Prime Minister announce business rates cuts for pubs, social clubs and live music venues, which are important anchors of our local high street.
“Many of the UK’s 5.7m small businesses are based on our high streets, and this should be the start of wider support for businesses that are so vital to our local communities.
‘While the summer can provide a welcome boost for many high street businesses, it also brings additional pressures.
“As we head towards the final quarter of the year, it’s positive to see the Prime Minister’s commitment to supporting businesses people want to see on their high streets, and we look forward to seeing that commitment backed by continued investment that enables local businesses and the communities they serve to thrive.”
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