The government has issued a not-so veiled signal of intent to increase business rates for AGCs in order to fund its 20 percent cut on rates for pubs and live music venues, prompting concerns for the wider gaming and amusement industry.
Adult gaming centres are bracing for a possible rise in business rates in order to offset a reduction for pubs and live music venues, after the government cited vape shops and other high street mainstays as businesses causing “social harm”.
Given new Prime Minister Andy Burnham’s openly hostile view on AGCs and betting shops, it has been assumed that these operations will be part of that business rates hike.
The hospitality cuts are confirmed to come into effect as of April 2027, however Burnham is yet to officially include AGCs in the balancing measure aimed at raising £100m to subsidise “the backbone of local high streets.”
A plan of paltry and punitive measures?
Analysts in the know recognise this as a paltry and tokenistic offering given the desperate plight of high street businesses – a £1,100 saving on business rates is a drop in the ocean of debt and cost pressures that pubs are experiencing at the moment.
It will not save one single pub from entering the red zone.
However, the Prime Minister has seized upon his own moral justice code to justify the decision.
“You can’t see all businesses the same,” said Burnham previously. “Some do real good in communities. Other businesses can cause social harm. Adult gaming centres on high streets can often bring real harm to communities. People will see the vape shops that don’t add much to community life and cause other issues too.”
Santa’s naughty and nice principle?
“It’s about developing a business rates regime where we give incentives to the businesses that give benefits, and look differently at the ones that cause social harm.”
Though the move to cut business rates was met with conditional support by the BBPA and Music Venues Trust, Bacta warned that increasing rates for gaming venues will cause significant damage to the wider amusement industry.
“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,” said Bacta president Joseph Cullis.
“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.”
The shape of things to come
So, two-to-three years down the road, what would the high street look like?
Businesses are leaving the high street because they can’t afford to operate on them – and the prospect of paying nore rates to fund local pubs will only accelerate this exit.
There will be more shuttered shops and no replacement occupants because funding for the Burnham high street plan, without doubt, will require funding.
And that will come in significantly higher business rates for non-pub and night-time venues, higher corporation tax and punitive taxes for businesses that don’t pass the Burnham morality test.
Andy wants to burn ‘em
Andy Burnham said… “You can’t see all businesses the same. Some do real good in communities. Other businesses can cause social harm. Adult gaming centres on high streets can often bring real harm to communities…
