The trade body says that hospitality can be a key partner in unlocking growth and driving employment, if backed by urgent tax reforms.
In his first speech as PM yesterday (20 July), Burnham described his speech as a “circuit-breaker moment for Britain – bringing forward to the biggest changes in the last 40 years… a new political model and a new economic model”.
He said he would help consumers with the cost of living with new measures that include removing VAT from electricity bills in October, and help more young people into work by giving them more support.
Commenting after Burham’s speech, Allen Simpson, chief executive of UKHospitality, says: “We congratulate Andy Burnham on becoming Prime Minister today and welcome his commitment to building the economy, supporting young people into work and creating growth that reaches every part of the country.
“Hospitality is uniquely placed to deliver these ambitions. 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.”
Simpson reiterated the industry’s call for the Government to reduce VAT for hospitality, something that Burnham had previously hinted he would look at when he became Prime Minister.
“Our sector is an economic powerhouse with huge opportunity, but that potential is being constrained by a significant tax burden,” adds Simpson.
“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.”
Yesterday it was announced that John Healey has been named chancellor in Burnham’s first Cabinet appointment.
Healey, who resigned as defence secretary last month, replaces Rachel Reeves.