Swinney urged to match Burnham's tax cut for pubs, clubs and venues

The new Prime Minister said business rates will be cut by 20 per cent south of the Border from April next year.

The Music Venue Trust (MVT) praised the move and called on the Scottish government to “swiftly confirm” it will follow suit.

It came as Chancellor John Healey vowed to lift “pessimism” about the UK economy and curb “the cost of doing business”.

Mark Davyd, chief executive of the MVT, said: “The 20 per cent additional reduction on business rates from April 2027 is an encouraging first step in a range of opportunities available to Andy Burnham’s new team to not just protect and secure live music, but begin to restore its central role at the heart of our towns and cities.”

READ MORE: Two frontrunners to replace Anas Sarwar hint they plan to stand for Scottish Labour leader

He added: “There remain some issues of implementation of previous reliefs, and we will work with colleagues in government to ensure that all grassroots music venues in England are recognised and eligible.

“We call on Senedd, Holyrood, and the Northern Ireland Assembly to swiftly confirm they will match this much needed support through Barnett formula consequentials.

“Venues in Wales, Scotland and Northern Ireland must be confident of a level playing field of economic conditions for touring across the UK.”

The discount will apply to nearly 32,000 hospitality businesses but will not be available to the very largest live music venues. It will cost around £100 million a year.

Mr Davyd called for the cuts to include more venues, saying: “Live music is an ecosystem, and we strongly urge the government to reconsider the limit to the eligibility criteria so that all live music spaces of all sizes qualify, supporting jobs, local economies and communities to access live music.”

The overhaul of business rates will be funded through a review of reliefs for businesses that “do not make a positive contribution to local communities”, such as vape shops and a crackdown on online marketplaces that do not comply with tax obligations, No 10 said.

Tom Kiehl, chief executive of UK Music, an organisation which represents the interests of the production side of the British music industry, said: “We welcome this much needed support for live music venues.

“These spaces are essential to the future of our world-leading music industry and serve as vital cultural hubs for communities right across the UK. We have lost too many venues to soaring business rates and these cuts offer a crucial lifeline to those still struggling to make ends meet.

“However, the government must extend this lifeline to our world class recording studios. We have lost – and continue to lose – far too many of these spaces, without which our industry simply wouldn’t exist.

“As a lifelong music fan, the Prime Minister knows full well how essential these spaces are, not only for the future prosperity of our industry, but for communities the length and breadth of the country.

“We urge him to include studios in this policy and offer them the protection they so urgently need and deserve.”

Tom Stainer, chief executive of the Campaign For Real Ale (Camra), said: “Pubgoers are crying out for a First Minister and Scottish government that matches the new Prime Minister’s pro-pub stance, and which wants to protect and promote our pubs as vital community hubs.

“The First Minister should commit today to matching the announcement made for pubs in England and give our locals an extra 20 per cent discount on their business rates bills too.

“Our business rates system is grossly unfair to pubs and social clubs, bricks and mortar businesses that are also vital social institutions for their communities.

“We desperately need proper reform of the system, so pubs aren’t forced to pay eye-watering business rates bills. A truly fair business rates system would permanently lower bills for pubs and end the need for these temporary reliefs once and for all.”

Speaking at an event in London, Mr Healey – who replaced Rachel Reeves as Chancellor – pledged to back British businesses.

“As Chancellor, I speak for the whole economy, and businesses of all sizes in all sectors are so critical to the good growth we seek to secure in this country, for delivering the investment, the innovation, the reindustrialisation that our economy needs, lifting the pessimism that has eroded not just the public’s confidence but has eroded our own prosperity,” he said.

“And my message to British businesses is quite simple: to British businesses, to British innovators, to British investors: I will back you as your Chancellor, and I’ll back you in financial services, in technology, in retail, in industry, in all parts of the economy.”

A Scottish government spokesperson said: “The Scottish Budget 2026-27 supports business and communities with a package of reliefs worth in excess of an estimated £870 million and almost all (96 per cent) of retail, hospitality and leisure businesses in Scotland can benefit from some form of rates relief.

“The Scottish government also funds the Small Business Bonus Scheme, for which more than 100,000 properties are eligible for, and which remains the most generous scheme of its kind in the UK.

“The Deputy First Minister recently announced a comprehensive review of non-domestic rates. This will examine improvements and reforms that can be made to the system, working closely with business to ensure the system provides the clarity, incentive, and transparency which businesses need.

“We are seeking clarity from the UK government how their announcement will affect funding for Scotland’s block grant. Our own decisions on rates and reliefs will be set out in the normal way as part of the Scottish Budget.”