Restaurant owners have hit out at Andy Burnham's new rule granting pubs, clubs and live music venues a 20% discount on business rates, calling the move "unfair" and divisive. The £100m aid package, announced by the new Labour government, has sparked warnings from hospitality bosses who argue it creates an artificial divide between businesses serving the same customers.
Leon boss leads criticism
John Vincent, boss of the Leon restaurant chain, criticised the exclusion of restaurants from the relief. "We are very confused as to why restaurants are not covered. They are suffering massively, just like pubs. We all compete in the same market and we have the same cost structures," he told The Telegraph. He argued the distinction drew "a false and unfair" line between businesses.
John, who runs a small family restaurant near Looe in Cornwall, questioned the move further. "Why on earth are we not included in the 20% reduction? Restaurants and hotels need the support more than pubs," he told the BBC. "All of hospitality has been bashed from all sides and is really struggling. I'm in my 70s and I'm still working because I have to - this cut is not really a pro-business move because it excludes so many others within hospitality."
Mixed reactions from pub sector
While some pub owners welcomed the relief, many said it fell short. David Moss, who runs five venues across Suffolk, described the announcement as "welcome but it's not enough". Tom Parol, landlord of The Lord Reresby in Rotherham, said the cut would allow for "a little bit more breathing space" but hoped it would be built upon. "It's a good start obviously, but I think VAT in hospitality and getting that down to 10% is vital for pubs to succeed," he said. "It's been tough ever since Covid, the increase in prices of beer in general as well as cost of living for people so it's been hard to try and get people to come out and spend the money in the pub."
Calls for VAT reduction
Thomasina Miers, co-founder of the restaurant chain Wahaca, praised Burnham's understanding of hospitality but focused on the need for broader support. "I think he really understands not only hospitality but because he is working in such an incredible devolved area, it has such a thriving restaurant industry. I think Andy Burnham does get it," she said.
Tommy Banks, who owns the Black Swan at Oldstead and Roots in York, voiced strong support for Burnham's comments on VAT. "I wholeheartedly support Andy Burnham’s comments on VAT – it feels like our industry is finally being heard. It’s a relief to hear someone at government level finally advocating for us at a time when our industry is at crisis point with more and more independent hospitality businesses closing each day. We need to bring our VAT rates down to match those across Europe and we need to do so urgently."
