Ex-Deputy PM Angela Rayner said hospitality venues face a ‘triple whammy’ of costs with business rates, VAT and minimum wage hikes – and called for a night-time economy minister
Angela Rayner has piled pressure on the Government to do more to help the night-time economy as struggling venues face a “triple whammy” of rising costs.
The former Deputy PM pointed to pressures from business rates, VAT and minimum wage hikes, and called on Keir Starmer to appoint a dedicated minister for the sector. She told an event in Liverpool: “We need to do better. We need to recognise the value of this industry, economically, culturally, socially. We need to design policy with the industry and not for it.”
Greater Manchester Mayor Andy Burnham also weighed in, saying: “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.”
Rachel Reeves offered a lifeline to cash-strapped pubs with a 15% discount on business rates bills after a furious backlash from landlords over her decision at the Budget to slash a pandemic-era discount. Landlords could save an additional £1,650 in 2026/27, according to the Treasury. The move will apply to live music venues but there have been calls to extend it more widely to help the whole hospitality sectory.
The Mirror has been championing the industry’s cause with its Your Pub Needs You campaign.
READ MORE: Government announces major support package for struggling pubs – see full details
It comes after the Government last month unveiled a a 15% discount in business rates from April, along with a real-terms freeze for another two years. The valuation model used for pubs will also be reviewed.
Ms Rayner, who spearheaded an overhaul of workers rights before she quit over her tax affairs last year, suggested the Government should go further.
She said: “I think we’ve got to recognise, it’s not even a double whammy, it’s not even a triple whammy, 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. And the cost of energy – we’ve got to start looking at the intersectionality of all these challenges and start relieving some of them.
“So we’ve talked about a review of business rates. We’ve got to, as I said in speeches before, we’ve got to put rocket boosters on what we promised at the election and start delivery.
“Now, we’ve only had a short time in Government, but I really believe that in order to get that hearing, people have to see the urgency of which the sector is facing.”
Ms Rayner said the Government should take a more “permissive approach” to licensing the sector and would support having a minister specifically responsible for the night-time economy to champion the sector at the national level.
She added: “But I also think our high streets will only be saved by looking at the hospitality sector as well. People see the high street and they think it’s decaying. And actually, it’s the hospitality sector and the night-time economy that is really breathing life back into our communities and our high streets.
“So we’ve really got to try and think of how policies can drive that, and how we can practically assist.”
Speaking at the same event, Mr Burnham said: “I would … argue for a VAT rate more consistent with what you find in Europe because of the social value that your businesses bring to places and towns that need that life injected into them.
“I personally would support permanently a lower business rates regime for hospitality businesses for exactly the same reason.”