Exclusive:Tommy Banks: Burnham's 'token' business rates policy is 'laughable'

Tommy Banks, who runs the Michelin-starred Black Swan in Oldstead and the Abbey Inn in Byland, told The Yorkshire Post that the announcement “will leave many people in hospitality feeling frustrated and patronised”.

On Thursday, the new Prime Minister revealed that pubs, clubs and live music venues will get a 20 per cent reduction from April to provide some “breathing space” with the cost of living.

It is expected to save a typical pub some £1,100 annually, but will not be available to the very largest live music venues.

This comes after the Labour government has been attacked by pubs and restaurants for failing to understand their industry.

In former chancellor Rachel Reeves’ first budget she raised national insurance on employers and the minimum wage, which particularly hit hospitality firms.

A business rates reevaluation following Covid reductions then saw pubs’ bills double or even triple in the space of a year.

Speaking of Mr Burnham’s announcement, Mr Banks said: “This is such a token gesture that it’s almost laughable.

“The value of the change works out at around £3 to £5 a day for many businesses, which is less than the price of a pint of beer. It won’t save businesses and it won’t protect jobs.”

The acclaimed chef, who has appeared on Masterchef and Saturday Morning with James Martin, has backed Tom Kerridge’s campaign to cut VAT for the hospitality industry.

Currently, the UK has the highest VAT rate for restaurants and pubs in Europe.

He added: “When Andy Burnham came in, many people in hospitality were optimistic because he had publicly spoken about reducing VAT for the sector. More recently, that conversation seems to have gone quiet.

“Either those commitments were made without any real intention of delivering them, which would be disappointing, or he is unable to pursue the policies he believes are right.

“Whichever it is, this will leave many people in hospitality feeling frustrated and patronised.”

While Tom Truelove, whose family have run the Three Acres pub near Huddersfield since 1968, said there needed to be more clarity about the policy.

He told this paper: “All the information is incredibly vague and there is a growing concern over how we are all categorised.

“We are a pub, we serve beers and real ales at pub prices. You can come in for a beer and not eat.

“I don’t know if we will see a reduction in business rates because we have rooms, like a lot of pubs.

“There’s a growing concern amongst my mates in the industry that pubs aren’t the only thing in hospitality.

“As a sector, we are feeling the heat, whether you’re a pub, coffee shop or restaurant.

“I don’t think just halving VAT is the answer, I think there’s got to be more of a rounded look at how they tax hospitality.”