Hospitality reports ‘Burnham Bounce’ of confidence

A “Burnham Bounce” of confidence has been reported from across the hospitality sector.

Members of the British Beer and Pub Association, the British Institute of Innkeeping, UKHospitality and Hospitality Ulster have reported optimism that the change in leadership would benefit the sector.

Prior to the new prime minister’s arrival at Number 10, only 18% of hospitality venues said they were optimistic that the incoming change in government leadership would benefit the hospitality and brewing industry.  

But since Andy Burnham’s announcement to reduce business rates, optimism across the trade bodies has more than doubled to 37%. 

According to the survey, tax burden remains the greatest barrier to investment (76%), followed by political instability (37%).

Hospitality businesses overwhelmingly backed a VAT reduction (92%) as a measure that would allow their businesses to grow, which follows more than 330,000 people backing the #VATsTheProblem campaign calling for 10% hospitality VAT.

Businesses also supported reducing business rates bills (68%) and changes to employer National Insurance Contributions (52%).

In a joint statement, the trade bodies said: “The new Prime Minister’s actions to back hospitality has clearly driven a boost in the sector’s optimism, yet significant challenges remain. 

“The support for pubs and live music venues on business rates was a great first step, and now we need to see wider support and conditions to allow the entire hospitality sector to grow and create jobs. 

“Our tax burden – amongst the highest in the economy – along with new regulatory costs is overwhelming us and the real victims are high streets, jobs, and communities.   

“A lower rate of VAT, wider permanent business rates reform and changes to employer NICs would help deliver the Prime Minister’s bold ambitions for every postcode. 

“We want to continue to work with the government so we can create new jobs, investment and growth, which will create a brighter, more prosperous UK.”