Angela Rayner and Andy Burnham criticise pub tax raid
Two prominent potential leadership challengers to Sir Keir Starmer have attacked the government’s tax regime for putting hospitality businesses, and particularly pubs, under serious pressure.
Angela Rayner acknowledged that the hike to the minimum wage has put pressure on hospitality businesses, and said that the government needs to “start relieving” the sector.
Starmer’s former deputy PM told a night-time economy conference: “I talked about the challenges of business rates, the challenges of VAT, the challenges, yes, of the minimum wage going up, and the living wage and the cost of energy.
“We’ve got to start looking at the intersectionality of all these challenges and start relieving some of them.”
Following strong backlash from the pubs sector over punitive business rates, Rachel Reeves announced a £300m support package.
However, the help does not extend to restaurants, hotels and retail businesses.
Rayner added: “So we’ve talked about a review of business rates. We’ve got to put rocket boosters up what we promised at the election and start delivering.”
Angela Rayner’s ‘(Un)employment rights bill’?
Meanwhile, Andy Burnham – whose bid to return to Westminster was blocked by Labour – has said the UK’s tax regime needs to adapt for the hospitality industry.
The Manchester mayor said: “We need a planning and tax regime that recognises that value added to the UK economy. And I’m including the music industry in this and live venues.
“I know pubs have got their business rates exemption but it should be broader than that, I think it should be all hospitality venues because you want that mixed economy as well. It’s not one version of the night time economy.”
Shadow business secretary Andrew Griffith slammed the comments from Rayner, criticising the former deputy PM as the author of the “Unemployment Rights Bill” in a post on X.
The senior Tory said: “Today Angela Rayner has finally recognised the cumulative impact this Government’s anti-business policies have had on the economy.
“But these words ring hollow given she was the principal architect of the job-destroying (Un)Employment Rights Bill.
“Only the Conservatives have the team, the plan and the leadership to reverse the job-destroying elements of the Employment Rights Bill and get Britain working again.”