Pow! Rayner socks it to Reeves over pub tax row after companies pushed to the brink

Angela Rayner today admitted that Labour’s tax rises have pushed many pubs and restaurants to the brink.

In a swipe at the approach taken by Rachel Reeves and Sir Keir Starmer, the former deputy PM acknowledged that hikes in business rates and the minimum wage were causing ‘challenges’ for the hospitality sector.

Speaking at a summit on the night-time economy in Liverpool, Ms Rayner – wearing Superman logo socks – said ‘more needs to be done’ to rescue the struggling sector.

She called for a dedicated minister, but said Labour also needed to address the costs it had imposed on the industry. 

‘It’s not even a double whammy, it’s not even a triple whammy,’ she said. 

‘I talk about the challenges on business rates, the challenges on VAT, the challenges of the minimum wage going up and the living wage going up.’

But the Tories accused Ms Rayner of hypocrisy. Shadow business secretary Andrew Griffith said her words would ‘ring hollow’ given her role in pushing through laws requiring firms to comply with hundreds of new regulations, under her controversial Employment Rights Act.

Mr Griffith said: ‘Today Angela Rayner has finally recognised the cumulative impact this Government’s anti-business policies have had on the economy.’ 

Angela Rayner (pictured) admitted that Labour’s tax rises have pushed many pubs and restaurants to the brink

Fellow leadership favourite Andy Burnham also joined the growing pubs revolt.

At the same event, he said he ‘would support permanently a lower business rates regime for hospitality businesses’ because of the ‘social value’ they bring to places.

The Chancellor did a partial U-turn on business rate hikes last month, following a Labour revolt and a campaign by hundreds of pubs to ban Labour MPs from their premises. 

Before winning power, the PM and Chancellor pledged to ‘kickstart’ the UK economy, but have so far failed to achieve little more than sluggish growth.

Sir Keir has endured his worst week in office so far after Scottish Labour leader Anas Sarwar demanded he resign in the wake of the Peter Mandelson scandal.

Ms Rayner is viewed as a leading candidate to replace the PM if he does go, although she publicly pledged her support to Sir Keir followng Mr Sarwar’s intervention.

She added that the Government must listen to the struggling sector.

In an apparent swipe at Ms Reeves’ handling of the economy, she warned many firms are facing ‘punishingly high’ business rates at the same time as their other costs are soaring.

Angela Rayner took aim at the Prime Minister and Chancellor over ‘punishing’ business rates as she demanded more help for Britain’s ‘decaying’ high streets

She suggested venues are having to try and cope with a ‘triple whammy’ of costs with business rates, VAT and a minimum wage increase, on top of other pressures.

Ms Rayner demanded Sir Keir appoint a ‘night-time economy’ minister and heaped praise on Greater Manchester mayor Andy Burnham – also seen as a possible replacement for Sir Keir – for his efforts in introducing greater night-time transport in his region. 

Taking questions after her address, Ms Rayner outlined the challenges facing the hospitality and nightlife sector.

These included ‘challenges’ on business rates, VAT, rising minimum wage rates, and increasing energy costs, she added.