Burnham, who was elected as MP for Makerfield in June, officially became Prime Minister on Monday 20 July, following Keir Starmer’s resignation last month.
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Ahead of taking office, he committed to a number of measures aimed at easing the pressure on hospitality businesses.
His promises included business rates reform, extending taper relief, reviewing increases to employers’ National Insurance Contributions and cutting red tape for late-night venues.
While he backed calls for a hospitality VAT cut from 20% to 10%, Burnham stopped short of making it a firm pledge, instead prioritising rates reform.
Swift action
Following his arrival in Downing Street, industry leaders have urged him to make good on his campaign pledges, adding VAT cuts, business rates reformation and lower employment costs would support growth, protect pubs and create jobs across the UK.
British Institute of Innkeeping (BII) CEO Steve Alton told The Morning Advertiser (The MA): “The new Prime Minister has made many promises about how things could positively change for hospitality under his leadership.
“It has been very encouraging to hear his stance on levelling the business rates playing field, as well as his support for the calls to reduce VAT to 10% for pubs and other hospitality venues.
“This summer has once again shown just how important pubs are at the heart of their communities, providing connection, celebration and vital local employment.
“Action from this new cabinet needs to be swift, decisive, and impactful to secure the future of pubs and the communities they support. This cannot be just a short-term initiative but a longer term reduction in the overall unfair tax burden our members are facing.”
British Beer & Pub Association (BBPA) CEO Emma McClarkin added a meaningful cut in draught duty and reduction of regulatory burdens would help keep pubs afloat, particularly independent and community venues.
Big ambitions
She continued: “We want to help deliver Burnham’s big ambitions for jobs and communities, and to do that we need him to keep going and cut the heavy cost of doing businesses that pubs and brewers grapple with so more can stay open and keep people in work.”
Meanwhile, UKHospitality (UKH) chief executive Allen Simpson stressed hospitality was “uniquely placed” to deliver Burnham’s ambitions.
“As one of the UK’s most socially productive sectors, we provide millions of jobs, offer first career opportunities for young people, help people back into work and support communities across the country,” he continued.
“Our sector is an economic powerhouse with huge opportunity, but that potential is being constrained by a significant tax burden.
“We stand ready to work with the new Government to ensure hospitality is recognised, not simply as a contributor to the economy, but as a vital partner in unlocking growth, creating opportunity and supporting every community across the UK.”
