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Business rates will be cut by 20 per cent for pubs, clubs and live music venues across England from April next year, Downing Street has announced.

The discount will apply to nearly 32,000 hospitality businesses and is expected to save a typical pub some £1,100 annually, but will not be available to the very largest live music venues.

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.

Prime Minister Andy Burnham had previously pledged to raise taxes on out-of-town warehouses for online giants such as Amazon to help pay for cuts to rates for hospitality firms.

Mr Burnham said: “This government will back the businesses that people want to see in their communities.

“I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.”

The Government will look to set out further reform to the wider business rates system, including small business rates relief, at the Budget.

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