Labour is today urging Chancellor to confirm immediately an extension of temporary
business rates relief for six months to save over 1,800 theatres,
museums, galleries and cinemas and help our high streets,
including more than 700 across the North and Midlands.
New research from Labour reveals that the policy would save a
business in a typical property subject to business rates an
average of £53,000 over a six-month period. This would give
breathing space to embattled venues and stave off the threat of
closure.
Labour is calling on the Chancellor to immediately announce the
extension instead of waiting for the Budget, as research shows
more than 30,000 leisure businesses across the North and Midlands
would benefit.
Reed has today repeated Labour’s call for a temporary 5% reduced
rate of VAT for the hospitality, tourism and culture sectors to
continue for another six months or until three months after the
lifting of health restrictions – whichever comes later. The
reduced rate is set to expire on 31 March, when it will return to
20%.
Extending the VAT cut will boost demand for their services in the
critical period after restrictions have been lifted, when
consumer confidence is likely to still be relatively low.
, Labour’s Shadow Communities Secretary, said:
“Theatres, galleries, cinemas and museums are the cultural
heartbeat of our town centres but they are under threat as never
before because of this Government’s incompetence and economic
mismanagement.
“The Chancellor’s dither and delay has created uncertainty for
businesses, cost jobs and threatened our recovery, despite
Labour’s repeated calls to provide businesses with breathing
space by extending the business rate holiday and the VAT cut for
hospitality and leisure.
“Britain can’t afford the Chancellor to make the same
irresponsible mistake all over again. He must give businesses
certainty and reduce the risk of losing both jobs and
life-enhancing cultural institutions.
Ends
Notes
Labour’s analysis of the number of cinemas, museums and theatres
which would benefit from the six-month extension, and the amount
an average business in these categories would save, in regions
and local authorities are contained in a spreadsheet attached.
Both are based on statistics published by the Valuation Office
Agency in the publication Non-domestic rating: stock of
properties including business floorspace, 2020
