Kate Shane MBE, managing director of Blackpool Tourism Ltd, has invited Andy Burnham to her seaside town, warning that Labour is failing the UK's job-creating holiday and hospitality industry. She spoke to the Express on the promenade to urge the PM and Chancellor John Healey to see for themselves how high VAT, business rates and Labour's National Insurance (NI) rise are damaging the sector.
Invitation to see the 'northern tourism powerhouse'
Kate, 57, who was raised near Blackpool's golden sands and danced with her dad in the Tower Ballroom as a child, said: "They haven't done anything that has helped this industry since they've been in power, Labour - but they so easily could and they've got time." She added: "I would like Mr Burnham and Mr Healey to recognise UK hospitality, entertainment and tourism as a big, growth industry that is a big earner for the Treasury but also a massive employer."
She wanted to use her Express interview to "100%" invite Mr Burnham to Blackpool to see the resort in action. "I would show him round, introduce him to our great young staff doing their first job with the rest of their lives in front of them and all that hidden talent that can be brought to the fore by this industry," she said. Pointing to Pleasure Beach Resort's new £8.7m gyro swing ride Aviktas, which takes riders 138ft in the air, she quipped: "I'd get him to go on Aviktas …. and from the ground wave at him!"
Personal connection to Blackpool
Kate and her brother Steven grew up around Blackpool with her parents Bill and Frances running a guest house. She recalled days on North Pier, eating crab and cockles at Robert's Oyster Bar and visiting the town's circus in the Tower. "It was fantastic; Blackpool was somewhere you went that was a little bit bonkers," she said.
She started her career in finance at First Leisure before working for Merlin running their attractions in the town, including Blackpool Tower. Years later, in her current role, she negotiated with Merlin for the council to take back the running of the 518ft-tall landmark, inspired by the Eiffel Tower and opened in 1894.
Economic pressures on the sector
Kate wants "business rates reform" across hospitality, telling how one hotelier saw his rates soar by 150% after buying the empty property next door to expand. "So what's the incentive to grow?" she said. She also said Labour's 2025 rise in employer NI and the lowering of the threshold has hit the town hard: "Lots of people want part-time work in Blackpool; they're caring for elderly parents or young children, or studying. We need lots of staff for the busy times and less for quieter times."
"National Insurance has a direct impact on the bottom line but Blackpool is predominantly value-seeking families so we can't pass on cost increases," she explained. "For example if a hotel's business rates has gone up by 150% and there's a 30% increase in payroll cost - due to National Living Wage increases, the NI threshold lowering and the NI rise - they can't say 'I used to charge £90 for bed and breakfast so now I'll charge £120', because customers won't come."
VAT concerns and calls for change
Kate took a swipe at the level of VAT for the sector, saying the UK is "completely disadvantaged from an international market perspective." The Government's 'Great British Summer Savings' scheme temporarily cut VAT from 20% to 5% until September, but Kate wants a permanent drop: "I'm not saying the Treasury can afford for it to be 5% forever but if it went to 10% or 12% permanently, that helps businesses cope with the NI changes."
A recent survey by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster showed more than 70% of UK hospitality operators cited VAT, food and drink inflation and increased staffing costs as their top challenges. Their 'the VATs The Problem' campaign calls on Labour to cut VAT for hospitality to 10% in line with most European countries.
When asked if Labour has grasped hospitality's importance since their 2024 General Election landslide, Kate smiled: "I'm not sure any government has." She explained how many Blackpool businesses now offer apprenticeships to give young people that first taste of work: "This industry can change lives. There's kids in situations in this town you can't fathom. We must stop kids thinking 'Mum and Dad don't work, I don't work' and instead think 'I can be the master of my own destiny'."
This year Pleasure Beach Resort is 130 years old, and Kate, awarded an MBE last year for services to tourism and the local community, hopes in another century the resort will still be "the bonkers place that it is." She beamed: "There will always be a Blackpool. We will all be dust but the Tower will still be upright, the tide will come in twice a day and the sun will still shine - and it will still be a fun place, a safe place and a family place."
We put Kate's offer to Burnham to visit Blackpool to his office at No.10 but received a response instead from the Treasury. A spokesperson said: "The Chancellor has prioritised support for the hospitality industry in his first week in the job when he cut business rates by 20% for pubs, social clubs and live music venues - saving thousands of locals over £1,000 a year. This is on top of our Great British Summer Savings, which is increasing footfall for businesses, including tourist destinations in the North West and boosting local economies."
