Tom Kerridge slams Burnham’s pub tax plan as PM accused of political stunt

Andy Burnham’s promise to cut business rates for pubs, clubs and live music venues has been criticized as a political stunt, with industry leaders warning it does not go far enough.

Mr Burnham announced a 20 per cent cut in business rates on Thursday; It was the third major policy announcement in three days, promising around 32,000 businesses would benefit. He said the typical pub would save around £1,100 a year.

But the announcement triggered a debate among hospitality industry leaders, with celebrity chef and publican Tom Kerridge warning that savings passed on to businesses “won’t really make a difference”.

The TV chef had previously run a nationwide campaign calling for accommodation VAT to be reduced to 10 per cent under the headline “VAT is the problem”.

He said: “It doesn’t go far enough but it shows there is an understanding that hospitality, especially in smaller venues, needs help.”

Great British Menu winner Nick Beardshaw described the move as a “political manoeuvre” and said it was an “absolute drop in the ocean” when it comes to aid for the hospitality industry.

He said the policy was “not enough to save any business” and warned that many would close their doors by April when the measure comes into force.

“While it’s a positive thing, I think it’s kind of a political maneuver designed to dampen some of the noise that hospitality is creating,” he said.

“This is an absolute drop in the ocean. Business rates in these businesses are normally between 2 per cent and 4 per cent of turnover, so the reduction represents a 0.4 per cent to 0.8 per cent reduction in total costs.

“It’s not enough to save any business, as implied by his statement that he doesn’t want to see more of these businesses closed. Many won’t make it to next April.”

Mr Burnham said it was time to support the destruction of “precious local spaces” as he announced the measure, which comes amid a policy offensive to provide “breathing space” for people and businesses facing cost pressures.

The move will cost around £100 million a year and is planned to raise funds for it by reducing business rates relief for e-cigarette shops and cracking down on online businesses that do not pay VAT.

The Prime Minister campaigned for the hospitality industry when he was mayor of Greater Manchester and raised concerns that costs were forcing many venues to close.

Entrepreneur Sacha Lord, chairman of the Night Time Industries Association and an ally of Andy Burnham, told The Independent the measure was “just the beginning” of the aid.

Meanwhile, Sophia Handschuh, co-founder of Sourdough Sophia bakery, said it was “really encouraging to see the high street finally getting some traction” but added: “My concern is that cafes, bakeries and restaurants have been left out and we are facing exactly the same rising rents, charges and energy bills as the pubs next door.”

“We are part of what makes a neighborhood feel vibrant, so I would like to see that support extended to all of us.”

Steve Perez, founder of soft drinks company Global Brands and owner of two hotels in the Peak District, said the discounts were “minor”.

He told the BBC: “Of course we welcome it but it won’t make any material difference to any pub.”

He added: “It’s a bit like the supermarket putting up prices and then saying they’ve lowered them.”

His comments were echoed by Iain Hoskins, who runs the Ma Pub Group in Liverpool.

Mr Hoskins said: “I don’t want to sound ungrateful, but the increases we got last year are so big that by eliminating some of them now we can’t get better value than we did before.”

Since entering Downing Street on Monday, Mr Burnham has announced plans to remove VAT from electricity bills and impose a £2 cap on single bus fares across England.

Treasury Undersecretary Emma Reynolds insisted the policy was fully funded, although it was stated that both revenue sources were subject to review or consultation.

But the Conservatives said Mr Burnham should detail how he would pay for his policies.

Conservative shadow business secretary Andrew Griffith said: “While any support for Britain’s struggling businesses is welcome, this Government has once again been found wanting in both the detail and funding of this policy.”