Burnham win puts hospitality pledges in spotlight

Burnham win puts hospitality VAT and rates pledges in spotlight
Burnham win puts hospitality VAT and rates pledges in spotlight (Andy Burnham via @MayorofGM on X)

Andy Burnham’s victory in the Makerfield by-election has put his hospitality pledges back in focus, as the newly elected MP appears set to challenge Sir Keir Starmer for the Labour leadership.

Burnham won the seat for Labour after campaigning on a platform that included support for small businesses, pubs, nightlife and high streets.

Earlier this month, the former Greater Manchester mayor pledged to cut business rates for pubs, clubs and music venues by 20% if he became Prime Minister.

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He also said he would raise the rates-free threshold from £12,000 to £18,000 and extend the tapered relief threshold from £15,000 to £21,000, while abolishing business rates for cafés, shops and hairdressers.

At the time, Burnham said Labour had “got this wrong in Government” and had “undervalued” the contribution made by small local businesses.

He said: “Our high streets matter to me because they matter to the people who live here.

I want to make sure these family-owned businesses, as the heart and soul of this country, are protected and given the chance to thrive.

Andy Burnham

Burnham has also backed calls for hospitality VAT to be cut from 20% to 10%, in line with the #VATsTheProblem campaign spearheaded by chef and pub operator Tom Kerridge.

The campaign has received support from trade bodies including UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and CODE Hospitality.

Sector response

Trade bodies previously welcomed Burnham’s rates pledge, while calling for wider reform across the hospitality sector.

BBPA chief executive Emma McClarkin said a further 20% cut to business rates would be “a real boost for the local” and that raising the threshold would take many smaller pubs out of paying rates.

UKHospitality chief executive Allen Simpson said the business rates system was “broken and in need of reform”, but said any effective high street strategy should include a wider hospitality solution, including lower business rates and a 10% VAT rate for hospitality.

NTIA congratulations

The Night Time Industries Association has now congratulated Burnham on his Makerfield win and called on him to use his platform to champion nightlife, hospitality and the wider night-time economy.

Michael Kill, chief executive of the NTIA, said: “Burnham’s win now provides a platform to go further, to challenge the current Government’s approach to hospitality, nightlife and economic growth, and to become a leading voice for the reforms the sector desperately needs.

“We urge Andy to use his influence, platform and political capital to push for the commitments discussed at the Summit, including the appointment of a dedicated Night Time Economy Minister and a VAT reduction for hospitality and the wider night-time economy.”

He added: “The sector cannot survive on warm words alone. Businesses continue to close, jobs are being lost and confidence remains fragile.

“The industry is looking for leadership that is prepared to challenge the current regime, hold the Government to account and deliver on the commitments made to our sector.”

Burnham has previously faced criticism from UKHospitality over his support for a mandatory tourist levy in Manchester, with the trade body warning it could damage the city’s competitiveness and add further costs for businesses.

However, his latest pledges on rates, VAT and nightlife have drawn attention from operators and trade groups looking for stronger political support as hospitality continues to face pressure from tax, labour and energy costs.