Sector leaders demand action from new PM

as above
Defining moment: Sector leaders urge PM candidates to prioritise hospitality (Getty Images)

Voices from across the sector have called on the next appointed Prime Minister to prioritise hospitality, warning continued economic pressure has stifled growth.

Prime Minister Keir Starmer announced his resignation as both PM and leader of the Labour party this week, with his successor expected to be named in the coming weeks.

Join our new WhatsApp channel: The Morning Round-Up

Get the biggest pub trade stories straight to your phone. Listen to our one-minute daily news briefing and receive breaking news, exclusives and sector updates throughout the day. Remember to turn notifications on in the top right corner! Join the channel here.

Following his resignation, trade bodies representing both the wider hospitality industry and late-night venues urged leadership contenders to deliver urgent support for the sector.

Highlighting hospitality’s significant contribution to employment, tourism and local communities across the country, they called for measures to protect jobs and encourage long-term investment.

UKHospitality (UKH) chair Kate Nicholls said: “Hospitality supports communities across the country, playing a vital role in driving economic growth and creating employment, especially for young people.

“Yet many hospitality businesses continue to face significant cost pressures and operational challenges, meaning a drop off in investment and recruitment, and sadly, closures for some businesses.

Meaningful reform

“It’s important whoever becomes Prime Minister takes action to support the sector by reducing its cost burden.

“This includes a cut to hospitality VAT, meaningful reform of business rates, addressing the rising cost of employment and supporting the development of skills and the workforce.

“We will engage with any candidates in a leadership election and, subsequently, the next Prime Minister to ensure the sector’s voice is heard and that hospitality businesses have the backing they need to thrive.”

Speaking outside 10 Downing Street on Monday 22 June, Starmer said he had instructed Labour officials to begin the process of choosing a new leader.

Nominations are set to open on Thursday 9 July and the contest is due to conclude before Parliament breaks for the summer on Thursday 16 July.

A spokesperson for the Night-Time Industries Association (NTIA) called for candidates to recognise the “critical importance” of the UK’s night-time economy to the nations “future prosperity”.

Long-term sustainability

The spokesperson added the decisions made in the coming weeks would mark a “defining moment” for the country’s future, urging prospective successors to demonstrate their commitment to hospitality.

“When nightlife succeeds, Britain succeeds,” they continued.

“The UK’s night-time economy supports millions of workers, entrepreneurs, artists, venues, suppliers and communities, contributing billions of pounds annually while driving culture, tourism, hospitality and social connection.

“Yet the people and businesses that keep Britain vibrant after dark continue to face significant challenges and are too often overlooked in economic decisions and national policy discussions.

“The next Prime Minister must recognise the night-time economy is not simply about entertainment. It is about jobs, growth, investment, regeneration, culture and opportunity.

“As candidates set out their vision for Britain’s future, we urge them to engage directly with the sector and commit to policies that support investment, protect jobs, foster entrepreneurship and secure the long-term sustainability of night-time businesses across the country.”