Angela Rayner Makes Major Demand Following Labour's Pubs Policy Reversal
Former Deputy Prime Minister Angela Rayner has issued a significant call for enhanced government support for Britain's struggling hospitality sector, following Labour's recent policy climbdown on business rates relief for pubs. Rayner described venues as facing a "triple whammy" of escalating costs from business rates, VAT, and minimum wage increases, urging immediate action to safeguard the night-time economy.
Pressure Mounts for Dedicated Ministerial Role
Speaking at an event in Liverpool, Rayner explicitly called on Prime Minister Keir Starmer to appoint a dedicated minister for the night-time economy. She argued that such a role is essential to champion the sector at a national level and to design policies collaboratively with industry stakeholders rather than imposing them from above.
"We need to do better," Rayner stated. "We need to recognise the value of this industry, economically, culturally, socially. We need to design policy with the industry and not for it."
Labour's Business Rates Lifeline and Calls for Expansion
Rayner's demands come after Chancellor Rachel Reeves offered a lifeline to cash-strapped pubs with a 15% discount on business rates bills. This move followed a furious backlash from landlords over the initial decision to slash a pandemic-era discount in the Budget. According to Treasury estimates, landlords could save an additional £1,650 in the 2026/27 financial year.
The discount will apply to live music venues, but there have been widespread calls to extend it more broadly across the entire hospitality sector. This policy shift represents a notable reversal for the Labour government, which had faced intense criticism from industry groups and campaigners.
Broad Support from Regional Leaders
Greater Manchester Mayor Andy Burnham echoed Rayner's sentiments at the same event, advocating for more comprehensive support. Burnham suggested that business rates exemptions should be expanded beyond pubs to include all hospitality venues, emphasizing the importance of a mixed economy.
"I know pubs have got their business rates exemption but it should be broader than that," Burnham said. "I think it should be all hospitality venues because you want that mixed economy as well." He also argued for a VAT rate more consistent with European levels, citing the social value that hospitality businesses bring to communities.
Rayner's Analysis of Sector Challenges
Rayner elaborated on the multifaceted pressures facing the industry, highlighting not only business rates and VAT but also rising wage costs and energy prices. She stressed the need for a holistic approach to policy-making that addresses these intersecting challenges simultaneously.
"I think we've got to recognise, it's not even a double whammy, it's not even a triple whammy," Rayner explained. "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."
Urgent Action Required to Revitalise High Streets
Rayner further connected the health of the hospitality sector to the vitality of Britain's high streets, arguing that night-time economy venues are crucial for injecting life back into communities. She called for a more permissive approach to licensing and practical assistance to drive growth.
"But I also think our high streets will only be saved by looking at the hospitality sector as well," Rayner added. "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."
Background and Ongoing Campaigns
The government last month unveiled a 15% discount in business rates from April, alongside a real-terms freeze for another two years, and committed to reviewing the valuation model used for pubs. This announcement followed sustained campaigning by industry groups and media outlets, including the Mirror's "Your Pub Needs You" campaign.
Rayner, who spearheaded an overhaul of workers' rights before resigning over her tax affairs last year, suggested that the government must accelerate its efforts. "We've got to put rocket boosters on what we promised at the election and start delivery," she asserted, acknowledging the short time in government but emphasizing the urgency of the sector's plight.
As debates continue, the calls from Rayner and Burnham underscore a growing consensus on the need for targeted, sustained support to ensure the survival and prosperity of Britain's hospitality and night-time economy sectors.
