Hospitality firms feel optimism surge after Burnham's rate cut, but demand more tax relief
A poll shows pubs, bars and hotels are more hopeful about the government's support after the prime minister announced a business-rates discount, yet they warn that without further tax cuts the goodwill could fade.
Survey data compiled by several hospitality trade groups indicates that optimism among pubs, bars and hotels has risen sharply after the prime minister introduced a discount on business rates for these venues, with 37% now expecting government benefit compared with 18% previously. The uplift, described as a “Burnham bounce,” reflects Andy Burnham’s positioning as a strong supporter of the sector. Despite the positive shift, venue owners stress that the measures have done little to ease their mounting cost pressures, highlighting tax, especially VAT, as the primary barrier.
Three-quarters of respondents named tax as the biggest challenge, while political instability ranked second. The trade bodies are urging broader relief, including a reduced VAT rate, permanent business-rates reform and adjustments to employer national-insurance contributions. Over 330,000 people have signed a petition demanding a cut of hospitality VAT from 20% to 10%, though critics argue the proposal would be costly and mainly benefit large chains.
Why it matters
Hospitality jobs and high-street economies depend on tax and rate policies, so the sector's outlook affects broader economic health.
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