Labour Leaders Urge Government Action on Hospitality Tax Burden
Two prominent Labour figures, Angela Rayner and Andy Burnham, have launched a strong critique of the government's tax system, arguing it imposes excessive strain on hospitality businesses, with pubs being particularly hard-hit. Their comments come amid ongoing debates about economic support for the sector.
Rayner Highlights Cumulative Challenges for Firms
Angela Rayner, speaking at a night-time economy conference, pointed to multiple pressures facing hospitality firms. She acknowledged that the rise in the minimum wage has created difficulties, but emphasized the need for a holistic approach. "I talked about the challenges of business rates, the challenges of VAT, the challenges, yes, of the minimum wage going up, and the living wage and the cost of energy," Rayner stated.
She called on the government to "start relieving" these pressures, noting that a review of business rates is essential. "We've got to put rocket boosters up what we promised at the election and start delivering," she added, referencing previous commitments. Rayner's remarks follow a £300m support package unveiled by Rachel Reeves, which excludes restaurants, hotels, and retail businesses, drawing criticism from the pub sector.
Burnham Advocates for Broader Tax Adaptation
Meanwhile, Andy Burnham, the Mayor of Manchester, argued that the UK's tax regime must be adapted to better support the hospitality industry. He stressed that the sector adds significant value to the economy, including live music venues. "We need a planning and tax regime that recognises that value added to the UK economy. And I'm including the music industry in this and live venues," Burnham said.
He proposed extending relief beyond pubs to all hospitality venues, advocating for a mixed economy in the night-time sector. "I know pubs have got their business rates exemption but it should be broader than that, I think it should be all hospitality venues because you want that mixed economy as well. It's not one version of the night time economy," he explained.
Conservative Response and Political Context
Shadow Business Secretary Andrew Griffith responded sharply to Rayner's comments, blaming her for the "Unemployment Rights Bill" in a social media post. He accused her of hypocrisy, stating, "Today Angela Rayner has finally recognised the cumulative impact this Government's anti-business policies have had on the economy. But these words ring hollow given she was the principal architect of the job-destroying (Un)Employment Rights Bill."
Griffith asserted that only the Conservatives have the plan to reverse what he termed job-destroying elements and boost employment. Both Rayner and Burnham are seen as potential future leadership contenders within Labour, adding a political dimension to their economic criticisms. Their calls for tax reform highlight ongoing tensions over business support and economic policy in the UK.
