Tommy Banks: 'I've been in the hospitality business for 20 years - this is the toughest it's been'

Tommy Banks runs the Black Swan in Oldstead and Roots in York, both of which have Michelin stars, as well the Abbey Inn in Byland and the General Tarleton pub near Knaresbrough.

Speaking to The Yorkshire Post ahead of the Budget, Mr Banks urged action from Mr Burnham and Chancellor John Healey on VAT.

While the vast majority of Europe has lower rates of the sales tax on the hospitality industry to help pubs and restaurants, there is no such relief in the UK.

A number of acclaimed chefs, including Mr Banks, have been calling on the Government to revisit this in next week’s Budget.

He said: “That would make a huge difference. It would help keep businesses open, protect jobs and give operators the confidence to invest and grow.

“The Government also needs to revisit Rachel Reeves’s disastrous decision to increase employers’ National Insurance contributions, with particular attention to the impact on opportunities for young people.

“Hospitality gives so many people their first job, their first experience of responsibility and the chance to build a career.

“Making employment more expensive means fewer opportunities. We should be making it easier for businesses to take young people on.”

And Mr Banks warned hospitality is facing the toughest headwinds during his 20 years in the industry.

“There is a perfect storm of rising food prices, energy costs and wages, alongside an increasing tax burden. At the same time, our guests are feeling poorer and have less money to spend.

“Successive Budgets have piled costs onto businesses while doing very little to help us grow. Small businesses in particular have very little room left to absorb those increases.

“You can only put your prices up so far before people simply cannot afford to come.”

He added that there is a clear disconnect in Government words and action around business and hospitality.

“That disconnect is particularly obvious in rural areas,” he explained.

“Farming, pubs, restaurants and tourism are all connected. They support local jobs, suppliers and the whole infrastructure of the countryside. When one part struggles, the effects spread through the community.”

On Mr Burnham, Mr Banks finished by saying: “I hope this Budget gives us a reason to join him for a celebratory pint, but I’m not holding my breath.”

While there is speculation that pubs could see a boost from an additional penny off tax on a pint of beer, the spirits industry fears that its levies could rise again.

This is despite evidence from the UK Spirits Alliance which found that previous hikes are actually costing the Exchequer money.

Natalie Hall, director at York Gin said: “If we want our pubs to survive, we need to look beyond the pint. It’s time the Government levelled the playing field to reflect changes in consumer habits and the variety within the sector.

“As producers, we’re seeing the impact current spirits duty levels are having on the pubs, clubs, hotels and bars we supply.

“Support for spirits will benefit the whole hospitality sector. Meanwhile, measures like cutting a penny off a pint are just a gimmick.”