UK gaming halls brace for business rates cuts
Andy Burnham’s new policy is expected to make gaming halls and vape stores pay for rate cuts for other businesses.
UK.- The UK’s new prime minister Andy Burnham has announced a slate of new economic policies, and there’s bad news for gaming halls. It appears almost certain that licensed Adult Gaming Centres (AGCs) will lose a significant portion of their business rate relief as part of a policy change intended to favour other types of high street business.
Burnham’s new administration has announced that from April 2027, businesses deemed to have a “negative impact” on society will pay higher rates. Vape shops were immediately named as a target of the policy but Burnham later dropped strong hints that gaming venues will also be subject to reduced relief. There are now doubts about whether retail bookmakers could also be included.
During a visit to a pub in Harlow, Essex, Burnham defended the decision to prioritise certain hospitality venues at the expense of other businesses.
“Pubs need to know that the cavalry is coming,” he said, adding: “Some businesses do real good… But other businesses can cause social harm. So adult gaming centres on high streets can often bring real harm to communities. Then people will see the vape shops that often don’t add much to community life and cause other issues too.”
“They will obviously pay higher rates to give the ability then to cut business rates for pubs and other venues that bring people together and bring wider benefits to high streets and communities,” he added.
The reduced rate relief for certain businesses is intended to benefit others in a bid to revive local high streets. The government says the revenue generated will fund a £100m support package for pubs, clubs, and grassroots music venues, providing relief to around 32,000 small and independent businesses.
Businesses considered “the backbone of local high streets” will see a 20 per cent reduction in business rates for venues.
The discount for pubs, which builds on a 15 per cent cut announced earlier this year, is expected to save a typical venue around £1,100 annually. However, the relief will not extend to the largest live music venues, nor to cafes and restaurants.
Mixed reactions and calls for clarity
The announcement has drawn mixed reactions. The British Beer & Pub Association has expressed delight, while the Music Venues Trust called the measure “an encouraging first step.” But critics warned the targeted approach leaves many sectors behind. Ros Morgan of the Real Rates Reform Alliance said: “Targeted support for a small number of sectors is not a substitute for fundamental reform.”
The opposition pressed for clarity. Conservative shadow business secretary Andrew Griffith argued: “Whilst any support for Britain’s hard-pressed businesses is welcome, once again this government has been found wanting on both the detail and funding for this policy.”
The gaming sector will also be wanting clarity on whether retail betting will be included in the list of businesses considered “negative” for the high street. There have been suggestions that Burnham’s longstanding advocacy for regional devolution could see him take sides with the growing calls from local authorities for tougher policies on gambling in general.
The new PM previously signed a letter with 38 other local officials calling for councils to have greater powers over gambling licensing.
The Coalition to End Gambling Ads (CEGA) continues to gain support, with the northern city councils of Liverpool and Sheffield the latest authorities to join. Writing in Politics Home last week, Will Prochaska, director of CEGA, has suggested that addressing gambling ads could offer Burnham’s a “quick win”.
The latest policy announcement also comes shortly after an influential think tank called for the government to raise Machine Games Duty on Category B slot machines. Bacta, the association which represents the gaming hall sector, warned that such a move would have a devastating impact on seaside arcades, forcing closures and undermining the appeal of the Great British seaside holiday. Research conducted by VisitBritain recently showed an 18 per cent year-on-year decline in trips to England’s coast.
Bacta President Joseph Cullis warned: “What’s perfectly clear is that any increase in the tax burden for already under pressure destination venues such as piers and coastal arcades will directly impact the appeal of a trip to the seaside as businesses either close permanently, are forced to pass on tax increases to holidaymakers or have to reduce the hospitality offering. However individual businesses respond, the outcome is inevitable – a significantly reduced and more expensive experience that will serve to either transform two- or three-night breaks into a day trip, and/or encourage families to holiday abroad.”
