Backbench Labour MP hits out at Sir Keir Starmer over hospitality business rates

Struggling hospitality businesses need more support amid rising tax and energy costs, a backbench Labour MP has warned the Prime Minister.

Cat Eccles was met with cheers from the opposition benches as she demanded the Government do more to back the “vital role” of hospitality and leisure businesses, calling for a similar relief package to the one it offered pubs.

In January, the Chancellor announced that pubs and live music venues would benefit from 15 per cent off their business rates bills from April.

This came amid warnings from the sector that changes from November’s autumn Budget would lead to mass closures and job losses, and Rachel Reeves was banned from her local in Pudsey.

However, other hospitality businesses such as hotels, restaurants and cafes received no additional support, despite their own concerns over soaring tax bills.

Michelin-starred Yorkshire chef Tommy Banks previously told this paper: “It’s frankly absurd to limit this support to pubs while excluding restaurants, cafés and hotels.

“The idea that these businesses can be neatly separated shows a lack of understanding of how the hospitality ecosystem actually works.”

Speaking at Prime Minister’s Questions yesterday, Ms Eccles said: “The announcement that pubs and music venues would receive a much-welcome reduction in business rates is a positive step.

Prime Minister Sir Keir Starmer speaking during Prime Minister's Questions. PIC: House of Commons/UK Parliament/PA Wireplaceholder image
Prime Minister Sir Keir Starmer speaking during Prime Minister's Questions. PIC: House of Commons/UK Parliament/PA Wire

“However, in our manifesto, we did promise root and branch reform of business rates.

“Hospitality and leisure businesses in my Stourbridge constituency are facing a projected £20,000 increase in business rates over the next three years, along with employment costs, and increases in energy costs.

“Hospitality and leisure play a vital role for our communities, providing jobs and spaces to socialise.

“So will the Prime Minister consider a similar rates relief package for hospitality and leisure?”

Sir Keir Starmer offered no additional support, but said: “She’s right that we need the conditions for flourishing high streets, and it underscores the importance of six interest rate cuts, the £5.8bn that we put into Pride in Place and the work to put money in people’s pockets.

“I’m pleased we’ve delivered a 15 per cent cut and a two-year freeze for pubs and live music venues that comes on top of the £4.3bn to support businesses and permanently lower rates for retail, hospitality and leisure properties.”

Sir Keir was under intense pressure from Kemi Badenoch at PMQs over his appointment of Lord Peter Mandelson and his decision to hand his former communications chief, Lord Matthew Doyle, a peerage.

Lord Doyle has apologised after having the Labour whip removed for campaigning for Sean Morton in 2017 after he had been charged over indecent images of children, saying he believed his assertions of innocence, but the councillor later admitted having the images.

Opposition parties accused the Prime Minister of a “catastrophic lack of judgment” and said he had “rolled the same pitch” as he had with former ambassador to the US Lord Mandelson by claiming he had not been told of his appointees’ relationships with sex offenders.

Mrs Badenoch accused Sir Keir of knowing about his former spin doctor’s association with Moray councillor Morton when Lord Doyle took his seat in the upper chamber.

The Labour leader replied: “Matthew Doyle did not give a full account of his actions. On Monday I promised my party and my country there will be change. And yesterday I removed the whip from Matthew Doyle.”

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