Angela Rayner critiques Labour’s tax policies impacting hospitality sector
Angela Rayner has launched a blistering attack on Labour’s “punishing” tax grab on pubs and restaurants, calling for urgent support to invigorate the struggling hospitality sector, reports BritPanorama.
The former Deputy Prime Minister stressed the need for “rocket boosters” to ensure prosperity for high streets facing decline. Her comments arrive in the wake of the UK economy’s meager growth of just 0.1 per cent in the last quarter of the year.
Political opponents from the Conservative Party seized on her remarks, asserting that Labour’s “anti-business policies” have hampered economic recovery since the party came to power. They accused Labour of exacerbating the issues facing businesses in the hospitality sector.
Rayner, viewed by many as a potential challenger to Keir Starmer, urged for immediate interventions to revive decaying urban areas. She referenced multiple challenges — inflated business rates, rising energy costs, and increased VAT — that contribute to the hospitality sector’s distress.
“I think that we’ve got to recognise the, it’s not even the double whammy, it’s not even the triple whammy,” she stated, highlighting the intersectionality of issues affecting businesses. “Customers just aren’t there in the same way as they used to be as business rates remain punishingly high, energy bills soar, and supply chain costs continue to bite.”
Speaking at a summit on the night-time economy in Liverpool, Rayner pointed out that governments across Europe acknowledge the necessary investment in hospitality and nightlife, contrasting it with the UK’s approach. She called for a dedicated minister to advocate for the nighttime economy.
The government recently announced a 15 per cent discount on business rates for pubs and music venues, extending a freeze on rate increases for two years, claiming a financial package worth approximately £1,650 for the average pub. However, the efficacy of these measures has been questioned.
Shadow Business Secretary Andrew Griffith remarked, “Angela Rayner has finally recognised the cumulative impact this Government’s anti-business policies have had on the economy,” but expressed skepticism regarding the sincerity of her recent critiques given her past policy contributions.
With the economy struggling to meet expectations, only growing by 1.3 per cent in the last year, contrasts are stark against the anticipated 1.4 per cent growth previously suggested by the Bank of England. Economic indicators reveal a decline in GDP per head and diminished purchasing power for households.
Shadow Chancellor Mel Stride commented that the ongoing stagnation indicates a shrinking economy on a per-person basis, stating starkly that there is less money in individuals’ pockets. Meanwhile, Labour’s Rachel Reeves emphasized the party’s commitment to a robust economic strategy aimed at strengthening the economy.
The increasing scrutiny of both parties’ economic policies underscores a critical moment in British politics, as the hospitality sector continues to grapple with the repercussions of broader economic challenges.
As debates on economic recovery intensify, the upcoming months will prove pivotal for both Labour and the government in addressing the needs of key sectors and responding to public sentiment regarding fiscal policy.
