Angela Rayner criticized the government over rising hospitality sector taxes at Liverpool’s Night Time Economy Summit. She urged ministers to support the sector with real policy, not just words.
Pubs, restaurants, hotels, and nightclubs face steep tax increases because officials raised property valuations and removed the 40% Covid-era relief. Consequently, business leaders warn these changes could cut profits and force closures.
Last month, the government gave partial relief for pubs and music venues. Officials offered a 15% discount on business rates until 2029 and froze rates for two years. However, many hospitality businesses, such as restaurants and cafes, remain exposed to high bills.
Rayner argued that ministers often implement policy without consulting the sector. Therefore, she stressed, “Too often, policy is done to this sector, not with it.” She added that co-design, respect, and regular engagement can restore business confidence.
She also emphasized that businesses need predictable rules. Politicians must solve structural problems rather than postpone them. Moreover, confidence in politics matters for economic recovery.
The Treasury acted after industry groups and MPs pushed back strongly. Many leaders warned that planned tax rises could devastate hospitality jobs. In fact, some pub landlords even barred Labour MPs after the November Budget.
The Chancellor, Rachel Reeves, introduced transitional relief to soften rising bills. Still, organisations like UKHospitality and the British Beer and Pub Association warn average bills will rise by 15%, roughly £1,400 per business.
Rayner highlighted that recovery requires genuine understanding of the sector. “Recognising expertise, listening carefully, and co-designing policy is essential,” she said. Additionally, she urged ministers to address inequalities in support for hospitality.
The former deputy prime minister, seen as a potential Labour leadership contender, emphasized that action matters more than rhetoric. Therefore, she argued, businesses need immediate, fair measures to protect jobs and livelihoods.
The debate over hospitality sector taxes continues as companies wait for more guidance. Meanwhile, industry leaders insist that swift action can prevent further financial strain.
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