The UK’s parliament’s cross-party culture, media and sport committee (CMS) has written to the chancellor, Rachel Reeves, over concerns about the potential impact of business rate reform on cinemas and other hospitality and entertainment venues in England, such as grassroots music venues.
In the letter published yesterday (January 8), committee chair Caroline Dinenage said she is “extremely concerned” about the rate change and warns the measures announced in last November’s budget will have a disproportionate effect on hospitality and leisure premises, despite such businesses being a vital part of communities.
Reeves scaled back business rate discounts that have been in force since the pandemic from 75% to 40% and announced that there would be no discount at all from April.
“Our report on British film and high-end TV, published last April, highlighted the value of cinemas to local areas,” wrote Dinenage. “They are often the only form of cultural provision in a local area and can provide a community hub and access to the arts across all socio-economic groups. They also drive footfall to high street and shopping areas, bringing income to other hospitality and retail venues. We recognised the need for support for these venues in our report, but the government has so far been silent on what it might do for them.
Further support for these venues was promised by Prime Minister Keir Starmer, and the letter urges the Treasury to publish the analysis that led to the proposed tax changes and for the chancellor to confirm when the further support suggested by the Prime Minister will be announced.
“They are a critical part of the creative infrastructure of our country and without them, we will lose sites that incubate talent and allow us to see the best of new and established British culture,” added Dinenage.
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