Prime Minister Andy Burnham said on Thursday he would lower business rates for pubs, clubs and live music venues by 20% from April as part of his drive to lower cost pressures on households and businesses, and revive communities.

Burnham said the move would save the typical pub about £1,100 ($1,472.35) next year, benefiting nearly 32,000 venues.

The policy will cost the government £100 million a year, and will be welcomed by small independent venues as well as pub groups like J D Wetherspoon JDW.L, Marston’s MARS.L and Fuller, Smith & Turner FSTA.L, although it does not go as far as meeting the industry’s demands to halve sales tax for the sector.

While the sums involved are small, new PM Burnham is trying to show the government can quickly lower the cost of living, after his predecessor Keir Starmer spent the first few months of his tenure commissioning reviews into possible policy changes.

The cut to rates follows Burnham’s move to remove a tax from domestic electricity bills on Tuesday and a bus fare cap on Wednesday.

“For too long, governments have stood by while cherished venues have disappeared from our local high streets,” Burnham said in a statement. “So today I am changing that.

“This government will back the businesses that people want to see in their communities.”

A hospitality survey released in July showed 23% of respondents were operating at a loss, while 5% said their business was no longer viable.

The industry has been demanding more support since the COVID pandemic, saying it cannot cope with the pressure of rising wages, energy bills and rents, while consumer spending is muted.

The government said the rates cut would be funded in part by a review of relief for businesses such as vape shops that “do not make a positive contribution to local communities”, the government said.

Downing Street also said it would crack down on businesses that sell through online marketplaces but do not comply with tax obligations, and is exploring ways to make online marketplaces more responsible.