The government is to cut business rates for pubs, clubs and music venues.

Pubs, clubs and live music venues in England will be offered a 20% discount for business from April, which the government estimates will save companies around £1,100 next year.

Andy Burnham, in his third policy announcement since becoming prime minister, said: “For too long, governments have stood by as popular places disappear from our local high streets.”

The cuts will cost £100m and are backed by a tax relief assessment on firms such as vape shops that “do not make a positive contribution to local communities”, the government said.

Hospitality bosses welcomed the boost, but some pub owners said the package would not go far enough to offset the impact of price rises elsewhere.

The 20% discount on commercial rates does not apply to “very large” live music venues. Details of which businesses are eligible will be announced in Chancellor John Healey’s first Budget in the autumn.

The cuts are expected to use about 32,000 places, the government said.

Ian Hoskins, owner of the Ma Pub Group in Liverpool, told the BBC the relief would help “take the chip away” from rising costs, but questioned how many venues would benefit.

He said it may be “very meaningful”, but “as always, the devil is in the details”.

His pubs had previously missed out on government business rates support, and he said: “The increases were so big last year that we are now reducing some of these increases.

The government under former chancellor Rachel Reeves announced last year that it would reduce business rates, which had been in place since the outbreak, and that there would be no reduction from April this year.

That, combined with large upward adjustments in pub property values, has led landlords to expect much higher utility bills.

Following criticism from the hospitality industry, the government has reduced business rates for pubs and music venues by 15 per cent by 2026.

20% discount applies to existing support.

Commenting on the cuts, which will take effect next year, Steve Perez, founder of soft drinks company Global Brands and owner of two hotels, said the announcement was “welcome … but this will not make any material difference to any pub.”

UK Hospitality chief executive Alan Simpson said Burham’s plans were a “good start” which “suggests that his passion for hospitality has survived the M1 journey”.

But “hospitality is not for everyone,” he added.

The change in business rates for some hospitality companies is the latest move that Burnham hopes will give people and businesses “breathing space”.

Earlier this week, the new Prime Minister announced that the government would cut the 5% VAT on electricity bills and charge £2 on bus fares outside London.

But Conservative leader Kimi Badenoch said on Thursday: “When I look at the plans they’ve announced for the country, I ask myself, ‘Is this it?’

She said: “Andy Burnham has very little interest in Britain.”

As well as reviewing tax breaks for companies such as vape shops to support the price cuts, the government said it would “disrupt” businesses that “do not meet their tax obligations” selling on online marketplaces.

Nighttime Industries Association chief executive Michael Keel said the tax relief would “provide meaningful relief for businesses facing continued price pressures”.

But he said the industry was waiting for more details, while questions remained over the exclusion of the biggest live music venues.

The Federation of Small Businesses (FSB) said Thursday’s announcement should be a “minimum payment for actions in the small business community”.

FSB head of policy Tina MacKenzie said the plans were encouraging and would address the disadvantages of past business rates decisions that “restrained small business growth and jobs in every postcode”.