UKHospitality: Andy Burnham must support hospitality to ‘unlock growth’

In his first address as prime minister today, Andy Burnham outlined his ambitions, which included helping more young people into work and devolving power and opportunities for growth beyond Westminster.

Allen Simpson, chief executive of UKHospitality, said the industry body welcomed Burnham’s commitments, and called on the prime minister to reduce the cost burden for industry operators to drive growth.

“Hospitality is uniquely placed to deliver these ambitions,” said Simpson.

“As one of the UK’s most socially productive sectors, we provide millions of jobs, offer first career opportunities for young people, help people back into work and support communities across the country.

“Our sector is an economic powerhouse with huge opportunity, but that potential is being constrained by a significant tax burden. A permanent reduction in hospitality VAT to 10% would not only unlock investment and job creation, but also help make hospitality more affordable for consumers. Alongside lower business rates and reduced employment taxes, it would help deliver the growth the prime minister wants to see.

“We stand ready to work with the new government to ensure hospitality is recognised, not simply as a contributor to the economy, but as a vital partner in unlocking growth, creating opportunity and supporting every community across the UK.”

Simpson’s comments follow Burnham’s pledges in recent weeks to back local businesses and reform business rates for independent hospitality operators such as pubs and music venues.

Tom Kerridge, who is fronting the campaign to reduce VAT across the hospitality industry to 10%, has previously said Burnham “sees and has seen that if you embrace culture and hospitality things can thrive and grow” and “will be great” as prime minister.

Speaking to The Caterer, operators across hospitality expressed cautious optimism that Burnham would be a supportive figure to the hospitality industry as prime minister, based on his previous form as mayor of Greater Manchester.

Photo: House of Commons/Flickr