Andy Burnham has announced plans to cut business rates for pubs and hospitality venues as part of his bid to become the next Labour Party leader and prime minister. In a speech at the People’s History Museum in Manchester, the recently-elected Ashton-in-Makerfield MP outlined what he called 'the biggest rebalancing of power the country has ever seen'.
Key Proposals in Burnham's Speech
Burnham promised a 'new direction' and a 'fundamental reset' for the UK, including a new 'No 10 North' nerve centre in Manchester, greater public control over essential services, and a 10-year plan to raise living standards. For hospitality, he vowed to crack down on business rates to support struggling high streets and independent businesses. 'Rather than being a marker of decline, shouldn't we make our high streets the new symbol of Britain's renaissance?' he said on Monday.
During his campaign trail, Burnham called for a 20 per cent business rate cut for all pubs and clubs, and suggested that independent shops, restaurants, and cafes could be exempted from paying business rates altogether.
Industry Reactions
Neil Burke, co-owner of The Black Friar in Salford and the Horse & Jockey in Chorlton, expressed cautious optimism. 'Andy Burnham has got a good reputation for being supportive of hospitality, so I feel like if he was to take the top job then that would be a good thing for us,' he told the Manchester Evening News. However, he added: 'There is a part of me that feels like it’s going to end up being a bit of Rob Peter to Pay Paul, because things have been mapped out for the year and budgets are already set in stone.'
William Robinson, Managing Director of Pubs at Robinsons Brewery, which operates 250 pubs across the North West, said the speech gave him 'a bit of hope' but urged stronger commitment. 'We are encouraged by Andy Burnham's interest in business rate reduction. However, he must not lose sight of the requirement for meaningful business rate reform across pubs,' he said.
Calls for VAT Reduction
Burnham's speech did not address calls from the hospitality sector to cut VAT from 20% to 10%. In 2024, he had suggested he would reduce VAT for the industry. Luke Payne, owner of the Pack Horse pub in Hayfield and the Almanac in Glossop, said the 'industry has been urging' for a VAT reduction. 'I would hope that Andy Burnham is in a position where he will listen to us,' Payne said. 'I think his heart is in the right place, he’s an excellent communicator and I think he will stand up for what he believes in much better than anyone in the government currently does.'
Burke added that cutting VAT would 'make a big difference' to hospitality. 'If VAT was to be cut, we could pass that benefit onto customers. It would help get more people through the door, and means we have more money in the bank at the end of the month.'
Impact on Hospitality Sector
Robinson echoed the call for VAT alignment with Europe. 'We're hoping to hear Burnham set out plans to bring VAT for hospitality in line with Ireland and the rest of Europe at 9%. The compounding impact of taxes on pubs and hospitality is really beginning to bite the sector,' he said. The changes to National Insurance and National Minimum Wage increases affect hospitality businesses especially hard, he noted.
Burke expressed hope that Burnham's understanding of the sector would lead to meaningful support. 'In the last five years, you could write a book based on the amount of things that have changed in hospitality. There's been Brexit, the duty of alcohol, minimum wage increases, prices generally going up... I think parliament has been quite London-centric for too long that they don't see the empty shop doors, the closed restaurants on the high streets as much as others do.'
