The Isle of Man Government says it is closely monitoring plans to introduce a business rates reduction for pubs, social clubs and live music venues in England, but has stressed that the island's rating system operates differently.

The comments follow an announcement by new UK Prime Minister Andy Burnham that eligible venues in England will receive a 20% cut to business rates from April in a move aimed at supporting the hospitality sector.

The UK Government estimates the measure will save businesses around £1,100 next year.

Costing £100 million, it will be funded through a review of tax relief for businesses such as vape shops, which ministers said ‘do not make a positive contribution to local communities’.

The Isle of Man Government has already confirmed it will mirror one of Mr Burnham's early policy announcements by reducing VAT on domestic electricity supplies from 5% to 0% from October 1, in line with its obligations under the Customs and Excise Agreement with the UK.

However, it has stopped short of committing to a similar approach on business rates.

A government spokesperson told Isle of Man Today: ‘The Isle of Man Government is closely monitoring measures announced in England, including the proposed reduction in business rates for pubs, social clubs and live music venues.

‘While the island's economic conditions and rating system differ, and rates paid by businesses are generally significantly lower, we recognise that local businesses face pressures in other areas.

‘Government will continue to assess developments and their potential implications for the island as these proposals progress.’

The spokesperson added that the Department for Enterprise is now one year into delivering its long-term Local Economy Strategy, which was developed following an assessment of the Island's retail, hospitality and leisure sectors.

The strategy is backed by an initial £2.4 million of funding to provide targeted support for businesses, including grants to improve premises, support for events that increase footfall and initiatives designed to boost spending in towns and villages.

The department said the programme also brings together marketing initiatives and policy work to help empower communities and enable local businesses to thrive.