Pubs, bars, and hotels have reported a “Burnham bounce” in optimism, according to polling, following Prime Minister Andy Burnham’s engagement with the sector. This comes after a discount on business rates for pubs, clubs, and live music venues was announced last month.
A survey by multiple trade bodies indicates that 37% of businesses in the hospitality and brewing sector, which is collectively valued at approximately £100bn to the economy, now feel the government will benefit them. This level of optimism is more than double the 18% recorded before the business rates policy was introduced.
Despite this increase in sentiment, trade bodies have warned that the positive outlook could diminish without further tax relief. Three-quarters of respondents identified the tax burden, particularly VAT, as the biggest barrier for businesses, with political instability cited by 37% as the second largest.
The British Beer & Pubs Association, UK Hospitality, the British Institute of Innkeeping, and Hospitality Ulster compiled the survey. They stated that while the prime minister's action has boosted optimism, significant challenges persist, calling for wider support and conditions for growth, including a lower rate of VAT, permanent business rates reform, and changes to employer National Insurance Contributions.