'More of the same please', hospitality firms tell PM

Supplied Tom stands behind a bar and holding up a tall pint glass of Heineken beer toward the camera. The glass is filled with golden lager and has a thick white head at the top. He is wearing a dark navy or black T-shirt with the words “BIG pour” and a small Heineken logo printed on the chest.Supplied
Tom Parol, a South Yorkshire-based landlord, says the cut will allow for "a little bit more breathing space"

Andy Burnham's 20% cut in business rates for pubs, clubs and live music venues has been cautiously welcomed across Yorkshire hospitality, but workers stressed that more help was needed to help revive the sector.

The new prime minister said qualifying businesses in England would benefit from the reduction from April, which could save companies around £1,100 next year.

Those in hospitality said the savings would not be "groundbreaking", but hoped it could pave the way for other future measures including VAT cuts.

Simon Cotton, managing director of the North Yorkshire-based Fat Badger Group, said the announcement was "good news overall", adding: "More of the same please, Mr Burnham."

Burnham pledged his support on Thursday after saying that governments had "stood by for too long" while venues disappeared from local high streets.

"I said I would protect pubs and local high streets – the beating heart of our communities – and that's what we will do," he said.

"What we're announcing today is just the start as we work to bring back hope across the country."

A man in glasses and a light brown jacket stands in a warm, busy bar with beer taps and people behind him.
Simon Cotton runs hotels, restaurants and pubs across North Yorkshire

Cafes and restaurants will not benefit from the move, nor will hospitality businesses in Scotland.

Cotton, who runs hotels, restaurants and pubs across the county, called it "a step in the right direction" but said more needed to be done.

Frequent increases in business rates for hotels had been "eating away at margins", he said, adding there was "only so much" of additional costs that could be passed on to customers.

"It's not just pubs that need help, it's restaurants and hotels as well and it's a shame that that's not been included in this announcement," he said.

"We've got places in York, The Fat Badger, The Guy Fawkes Inn, but because they have bedrooms they're actually classed as hotels so our business won't benefit from any of that cut."

He reiterated it was "a good start", adding: "Let's just hope that this the start of a wider policy review."

Grace Wood/BBC A man with short brown hair and goatee stands in an empty room with decorative wallpaper and red leather sofas in the backgroundGrace Wood/BBC
Richard Cullen, from Tiffin Venue Management, says VAT cuts would further support the sector

Tom Parol, landlord of The Lord Reresby in Rotherham, said the cut would allow for a "little bit more breathing space" - but he too hoped it would be built on.

"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."

How much does Andy Burnham's cuts in business rates actually help venue owners?

Richard Cullen, from Bradford-based Tiffin Venue Management, called it a "welcome announcement".

"Obviously any support for pubs, clubs and live music venues is great," he said.

"From my perspective, if they cut VAT on food within pubs and the hospitality industry as a whole that would mean more to us than just the business rates alone."

Cullen said "the primary focus" needed to be on getting people back out to eat, which he believed VAT tax cuts could achieve.

"If we can get more support for hospitality overall, then I think we'll see an increase in the general economy through more people being in work, coming out to eat and to socialise again," he said.

"I think that's part of the general British culture."

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