Suffolk Chamber statement on Government Business Rates announcement

“The decision by the new Prime Minister of a cut in business rates for pubs, clubs and music venues by 20% from next April is a clear lobbying win for Suffolk Chamber of Commerce, our members in those sectors and the wider Chamber network. 

“We support the sentiments expressed by Nick Mackenzie, chief executive officer of Greene King, a Suffolk Chamber patron when he says: “Pubs have long faced disproportionately higher business rates and today’s announcement is much needed relief. It’s hugely encouraging that the Prime Minister has chosen to prioritise our sector in his first few days in office, recognising our potential to support local economies and provide jobs in the heart of communities. We look forward to working with him over the weeks ahead to build on this support and deliver much-needed long-term reform on unfair taxation for the sector, including business rates, VAT and duty.”

“Yet, whilst this stop-gap decision is very welcome for hard-pressed hospitality businesses in our county, it needs to be followed swiftly by a much more fundamental shift in approach as to how Government taxes businesses. Corporate taxation as a whole has been the largest concern amongst business owners and management teams for a number of years – and Business Rates, an input tax which applies before a company opens its doors or produces anything, is especially pernicious to risk-taking and growth.

“Root and branch reform of the system was a Labour manifesto commitment, and it is time to deliver on that promise. At the very least, the Government must mitigate the steep jumps in bills across all sectors caused by the 2026 revaluation. That means introducing a single flat rate multiplier and making bills easier to understand.  

“This shift should then jumpstart a more rigorous consultation with businesses that goes beyond even a complete overhaul of Business Rates to include the scrapping of this system and its replacement either by a tax on profits or through using other existing taxation methods, such as Corporation Tax.

“In short, we are looking to the Burnham administration to take the decisive step that has been a body-swerved by its predecessors to the detriment of businesses and ultimately household incomes. This could be THE key economic legacy coming out of this Parliament.”