The prime minister has announced a cut to business rates for pubs, social clubs and live music venues across England from April next year.

New business rate cuts will benefit nearly 32,000 pubs, clubs and live music venues, saving the typical pub an estimated £1,100 in the next financial year.

The changes are fully funded, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops. There will also be a crackdown on businesses that sell through online marketplaces but do not comply with their tax obligations.

The government is also consulting on measures to make online marketplaces more responsible for preventing non-compliant sellers from avoiding their tax obligations.

Prime Minister Andy Burnham said: "For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.

"This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country."

Chancellor of the Exchequer John Healey said: "Pubs, clubs and live music venues are at the heart of communities across the UK. They help make a place what we love. They bring people together, support local jobs and help keep high streets and town centres busy — which is why we will back them all the way.

"We are determined to bring hope back, give businesses the support they need and generate growth in every postcode."