Angela Rayner has today openly admitted that tax increases implemented by the Labour government have pushed numerous pubs and restaurants to the very brink of survival. In a pointed critique directed at the economic approach championed by Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer, the former deputy prime minister conceded that hikes in business rates and the national minimum wage are creating significant 'challenges' for the beleaguered hospitality industry.
Rayner's Stark Warning at Liverpool Summit
Speaking at a major summit focused on the night-time economy in Liverpool, Ms Rayner – notably wearing socks featuring the Superman logo – stated unequivocally that 'more needs to be done' to rescue the struggling sector. She called for the appointment of a dedicated minister for the night-time economy but also stressed that the Labour Party must confront the mounting costs it has itself imposed on the industry.
'It's not even a double whammy, it's not even a triple whammy,' Ms Rayner declared. '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.'
Tory Accusations of Hypocrisy
However, Conservative politicians swiftly accused Ms Rayner of profound hypocrisy. Shadow Business Secretary Andrew Griffith asserted that her words would 'ring hollow' given her instrumental role in pushing through the controversial Employment Rights Act. This legislation requires businesses to comply with hundreds of new regulations.
Mr Griffith stated: 'Today Angela Rayner has finally recognised the cumulative impact this Government's anti-business policies have had on the economy.'
Growing Revolt Within Labour Ranks
Fellow senior Labour figure and leadership favourite Andy Burnham also joined the growing revolt concerning pub and restaurant support. At the same Liverpool event, the Greater Manchester Mayor said he 'would support permanently a lower business rates regime for hospitality businesses' due to the immense 'social value' they bring to local communities.
This internal pressure follows a partial U-turn by the Chancellor on business rate increases last month. That decision came after a significant Labour backbench revolt and a campaign by hundreds of pubs threatening to ban Labour MPs from their premises.
Broader Political Turmoil for Starmer
The admissions and criticisms arrive during a period of intense political turmoil for Sir Keir Starmer. Before winning power, the Prime Minister and Chancellor pledged to 'kickstart' the UK economy, but they have so far achieved little beyond sluggish growth figures.
Sir Keir has endured arguably his worst week in office following Scottish Labour leader Anas Sarwar's demand for his resignation in the wake of the Peter Mandelson scandal. Ms Rayner is widely viewed as a leading candidate to replace the Prime Minister should he depart, although she has publicly pledged her support to Sir Keir following Mr Sarwar's intervention.
Call for Government to Listen
Ms Rayner added that the Government must start listening to the struggling hospitality sector. In an apparent swipe at Chancellor Reeves' economic management, she warned that many firms are confronting 'punishingly high' business rates simultaneously with other soaring operational costs.
She suggested venues are grappling with a 'triple whammy' of costs from business rates, VAT, and minimum wage increases, layered on top of additional pressures like rising energy bills.
Policy Demands and Praise for Burnham
Ms Rayner demanded that Sir Keir appoint a dedicated 'night-time economy' minister. She also heaped praise on Andy Burnham – another figure seen as a potential successor to Sir Keir – for his efforts in introducing improved night-time transport services in the Greater Manchester region.
Taking questions after her keynote address, Ms Rayner outlined the multifaceted challenges facing the hospitality and nightlife sector. These included persistent 'challenges' related to business rates, VAT, escalating minimum wage rates, and the relentless climb of energy costs, she elaborated.
