Pubs, bars and hotels have reportedly experienced a 'Burnham bounce' in optimism following the prime minister's flirtations with the sector, according to polling. But the hospitality industry warns that the goodwill could evaporate faster than a pint in a heatwave without further tax relief.
Andy Burnham has been playing the role of hospitality's knight in shining armor, both before and after his arrival at No 10, last month announcing a discount on business rates for pubs, clubs, and live music venues. The result? A survey by multiple trade bodies shows that 37% of businesses in the sector now believe his government will actually benefit hospitality and brewing, which together contribute a hefty £100bn to the economy.
This optimism is more than double the 18% recorded before the business rates policy was announced - a surge the trade bodies have cheekily dubbed the 'Burnham bounce.' The government has hinted at further business rates reform, but with details still as clear as a cloudy ale, venue owners caution that the steps taken so far have done precious little to lighten their groaning pile of rising costs.
The survey findings, shared with the Guardian, also reveal that the industry still views the tax burden - especially VAT - as the sector's biggest anchor. A whopping 75% of respondents pointed to tax as the primary barrier, with political instability (37%) trailing as the second-biggest roadblock.
The survey was compiled by the British Beer & Pubs Association, UK Hospitality, the British Institute of Innkeeping, and Hospitality Ulster. In a joint statement, they said: 'The new prime minister's action 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.'
They added: '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 [national insurance contributions] would help deliver the prime minister's bold ambitions for every postcode.'
Meanwhile, more than 330,000 people have signed a petition calling for VAT on hospitality to be slashed from 20% to 10%, a sector-specific relief that would bring the sales tax in line with many European countries. Critics, however, argue this would be an inefficient way to spur growth, costing over £10bn - much of which would line the pockets of large, profitable multinational chains. But who's counting when there's a good bounce to be had?
The Good Times
News in your inbox.
One sardonic roundup, delivered on your schedule. Free. Unsubscribe whenever your tolerance for wit runs out.
Already subscribed but we never reach your inbox? Check your spam folder and hit 'Not spam' (or 'Remove from spam') to bust us out of junk-mail purgatory. You'll be helping everyone else too.
Don't open any of our emails for a month and you'll be automatically removed from the mailing list.
Rewrite Article
Select parts to regenerate with a fresh AI pass. Translations will be updated automatically.
Generate AI Image
Creates a sardonic version of the article image using OpenAI.