At his first Prime Minister’s Questions (PMQs) on Wednesday 2 September, Burnham faced Conservative leader Kemi Badenoch over his approach to Government expenditure and whether he was prepared to reject spending requests.
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When questioned on what spending Labour had cut, Burnham said: “Tax is the simple answer to that question.”
He pointed to measures aimed at reducing costs for businesses, including the 20% business rates cut for pubs, clubs and live music venues, which comes into effect next year and is expected to benefit around 32,000 venues.
The Prime Minister also highlighted Government support for consumers to ease the cost-of-living-crisis, allowing for more discretionary spending.
Fiscal responsibility
“Within days of office I indicated we would remove VAT off electricity bills, that will help people with the cost of living, and then days later with the support of the Chancellor we said there would be a cut in business rates for pubs, social clubs, live music venues,” Burnham told MPs.
“So this Government is lowering the cost of living, lowering the cost of business and that is what we will continue to do.”
Though Burnham refused to rule out more tax hikes in the upcoming Budget, set for Wednesday 28 October, when questioned by Badenoch, adding he would not set out the Chancellor’s Budget at the despatch box.
However, he asserted the Government had deliberately set an early Budget date in a bid to “reduce the period for prolonged speculation” and uncertainty.
Burnham said: “This will be a Government grounded in fiscal responsibility. It will stick to the fiscal rules.”
Earlier this week, the Prime Minister also pledged further support for the sector during the first session of ‘People’s Major Questions’, a new social media Q&A taking questions from the public.
British heritage
He said: “I’m a big pub person. British heritage is wrapped up in our pubs.
“I said we would cut business rates for pubs, and that will come in soon. They need support, and they’ll get it from me and this Government.”
In addition, the Treasury also unveiled the Hospitality Grant Scheme, a new £10m fund aimed at supporting pubs, restaurants and cafes, this week.
The Prime Minister’s comments come as the sector continues to call for a cut in VAT ahead of the Budget, something Burnham had backed before taking office.
Since entering No 10, Government support for the hospitality sector has centred on business rates, with the Treasury having recently warned against a VAT cut.
Last month, financial secretary to the Treasury James Murray said the Government recognised the pressure facing pubs but stressed that reducing VAT would come at a significant cost to the Exchequer.
