Labour Heavyweights Launch Scathing Attack on Government's Hospitality Tax Policies
Two prominent Labour figures with potential leadership ambitions have launched a fierce criticism of the government's tax regime, arguing it is placing unsustainable pressure on hospitality businesses, particularly pubs. Angela Rayner and Andy Burnham both delivered pointed remarks highlighting the cumulative challenges facing the sector.
Rayner Calls for Immediate Relief Measures
Angela Rayner, Sir Keir Starmer's former deputy prime minister, acknowledged that while increases to the minimum wage have created financial strain for hospitality businesses, the government must begin providing substantial relief. Speaking at a night-time economy conference, Rayner outlined multiple intersecting pressures.
"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. "We've got to start looking at the intersectionality of all these challenges and start relieving some of them."
Following significant backlash from the pubs sector regarding punitive business rates, Chancellor Rachel Reeves announced a £300 million support package. However, this assistance notably excludes restaurants, hotels, and retail businesses, drawing further criticism.
Rayner emphasized the need for accelerated action: "So we've talked about a review of business rates. We've got to put rocket boosters up what we promised at the election and start delivering."
Burnham Advocates for Broader Tax Reform
Meanwhile, Andy Burnham, the Mayor of Manchester whose bid to return to Westminster was blocked by Labour leadership, argued that the UK's entire tax regime requires adaptation to properly support the hospitality industry.
"We need a planning and tax regime that recognises that value added to the UK economy," Burnham asserted. "And I'm including the music industry in this and live venues. 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."
Tory Response and Political Counterattack
Shadow business secretary Andrew Griffith swiftly criticized Rayner's comments, labeling her as the principal architect of what he termed the "Unemployment Rights Bill" in a social media post.
"Today Angela Rayner has finally recognised the cumulative impact this Government's anti-business policies have had on the economy," Griffith stated. "But these words ring hollow given she was the principal architect of the job-destroying (Un)Employment Rights Bill. Only the Conservatives have the team, the plan and the leadership to reverse the job-destroying elements of the Employment Rights Bill and get Britain working again."
The exchange highlights deepening political divisions over economic policy, with Labour figures pushing for comprehensive tax relief for struggling hospitality businesses while Conservatives counter that Labour's own policies have contributed to employment challenges.
