Survey results from the British Beer & Pub Association (BBPA), British Institute of Innkeeping (BII), UKHospitality (UKH) and Hospitality Ulster showed optimism that the change in Government leadership would benefit hospitality and brewing rose from 18% to 37%.
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The trade bodies described the shift as a “Burnham Bounce”, following Prime Minister Andy Burnham’s announcement of a 20% business rates cut for pubs, social clubs and live music venues from April next year.
However, the survey also found tax burdens remained the biggest barrier to investment, cited by 76% of businesses, while political instability was the second biggest barrier at 37%.
Further support
When asked what measures would allow their businesses to grow, 92% of respondents backed a VAT reduction.
This follows the #VATsTheProblem campaign, which is calling for hospitality VAT to be cut to 10% and has now attracted more than 345,000 signatures.
Businesses also supported reducing business rates bills, cited by 68%, and changes to employer national insurance contributions, cited by 52%.
Earlier this week, the Government also launched an independent review into how pubs and hotels are valued for business rates in England and Wales.
Tax burden
In a joint statement, the trade bodies said: “The new Prime Minister’s actions to back hospitality has clearly driven a boost in the sector’s optimism, yet significant challenges remain.
“The support for pubs and live music venues on business rates was a great first step, and now we need to see wider support and conditions to allow the entire hospitality sector to grow and create jobs.
“Our tax burden, amongst the highest in the economy, along with new regulatory costs is overwhelming us and the real victims are high streets, jobs and communities.
“A lower rate of VAT, wider permanent business rates reform and changes to employer NICs would help deliver the Prime Minister’s bold ambitions for every postcode.
“We want to continue to work with the Government so we can create new jobs, investment and growth, which will create a brighter, more prosperous UK.”
The survey was carried out by CGA by NIQ in July 2026, with respondents operating more than 20,000 hospitality sites.
