The recent business rates cut announced by Greater Manchester Mayor Andy Burnham has left many independent cafe owners frustrated and excluded. The targeted relief, worth roughly £100 million a year, covers pubs, social clubs, and live music venues—but not cafes or restaurants. Ferdinand Geus, business manager of Sheba Coffee, which sources Yemeni beans and supplies cafes worldwide, says the exclusion is unfair. "Around 3,000 small, family-owned farms in Yemen rely on us," he explains. "To survive, we need to expand, but we can't because of soaring energy bills and cost of living pressures."
Why Independent Cafes Need the Business Rates Cut
Cafes are more than retail spaces—they serve as community hubs, workplaces, and meeting points. Yet they face the same rising energy costs and inflation as pubs and music venues. Hakan Elbir, founder of the deaf-run Dialogue Cafe in East London, notes that despite holding down prices, the increase in coffee bean costs has squeezed margins. Without the rate relief, these businesses struggle to invest in staff, equipment, or even survival.
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Comparison of Businesses Included vs Excluded
| Business Type | Included in Rates Cut? | Estimated Annual Savings | Community Impact |
|---|---|---|---|
| Pubs | Yes | £1,100 | Social gathering, jobs |
| Social clubs | Yes | ~£1,000 | Membership events |
| Live music venues | Yes | ~£1,200 | Cultural spaces |
| Independent cafes | No | £0 | Community hubs, employment |
| Restaurants | No | £0 | Dining, local economy |
Key Takeaways for Cafe Owners and Policy Makers
- Artificial distinction: Critics argue separating pubs from cafes ignores shared commercial pressures.
- Energy bills: Cafes face the same rising utility costs as other high street businesses.
- Employment impact: Without relief, cafe owners cannot hire or expand, hurting local jobs.
- Community role: Cafes serve as inclusive workspaces and social hubs, especially for disabled and minority groups.
- Need for reform: Business rates should reflect modern high street realities, not historic categories.
Conclusion
The exclusion of cafes from the business rates cut highlights a gap in policy that fails to recognise the value of independent coffee shops. As the cost of living continues to bite, cafe owners like Geus and Elbir call for a more inclusive approach. "Supporting pubs while excluding cafes creates an artificial distinction," Geus adds. "We need a business rates system that helps all high street businesses thrive."
FAQ
What is the business rates cut in the UK?
It is a targeted reduction in business rates for specific high street sectors like pubs, social clubs, and live music venues, announced by Andy Burnham for Greater Manchester, worth about £100 million annually.
Why are cafes excluded from the business rates cut?
The policy focuses on venues considered traditional social hubs. Critics say the exclusion is arbitrary and ignores that cafes also serve as important community meeting places.
How does the exclusion affect small cafe businesses?
Many cafe owners report they cannot grow or hire new staff due to high energy bills and inflation. The rate relief would have saved a typical cafe around £1,100, which could fund expansion or lower prices.
What can cafe owners do to respond?
They can join industry groups like the UK Coffee Association to lobby for fairer business rates, engage local MPs, and share their stories to raise public awareness.
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