‘Rachel Reeves, you must do better’: Chancellor urged to act before hospitality’s collapse
Chancellor Rachel Reeves has been told to take urgent action to prevent the collapse of thousands of hospitality businesses across the UK.
In an open letter Sacha Lord, who was until recently Andy Burnham’s night time economy adviser for Greater Manchester, said he no longer considers Labour to be the party of “business and growth”.
Lord added that he is also reconsidering his membership of the Labour Party and called on the Chancellor to “outline a clear plan” to support the hospitality sector “before it is too late”.
In the letter, the Parklife festival founder said: “I urge you to act before irreversible damage is done.
“I myself have been a Labour Party member for four years. I am now reconsidering this position. I attended your manifesto launch, I supported you in your bid to become the government and I believed you had a deep understanding of the problems on the ground. Not anymore.
I heard Labour declare itself the party for business and growth. I no longer believe that to be the case.
Lord added that the policies outlined by Rachel Reeves in the Autumn Budget, and are due to come into affect in April, will “cripple businesses across the sector, and the consequences of these plans are already becoming visible”.
He also cited forecasters predicting that 9,000 pubs could close in the next year.
Lord, who also helped launch the Warehouse Project dance music events, said: “These landlords are already grappling with rising operational costs, reduced consumer spending, and severe staffing shortages, yet these new tax implications will push many small and independent operators to breaking point.
“These businesses are not just numbers, they prop up our high streets, our communities and our culture that we are famed for the world over.
“If nothing changes, thousands more businesses will collapse, and Labour will be responsible.
“Surely, a business supported to make even a modest profit, is far better than one that closes?”
Sacha Lord leaves Andy Burnham advisor role
The open letter comes after Sacha Lord stepped down as an adviser to Greater Manchester Mayor Andy Burnham after a £400,000 grant given to an events company co-owned by the businessman has been pulled following a review.
Last week, Arts Council England confirmed it is seeking to recover the funds awarded to Primary Event Solutions during the Covid-19 pandemic after conducting further analysis of the application.
Responding to the move, Lord said the funds were used appropriately but there had been “a small number of unintended oversights”.
He added that he was leaving his role advising Burnham because of the “emotional toll” it had taken on him and his family.
Lord owned a minority share in Primary Event Solutions, which is now in liquidation.
‘If you have a plan Rachel Reeves, you must show us’
Also in the open letter sent to Rachel Reeves, Lord said the potential hospitality closures would throw “young people to the wolves at a time when the cost of living is already unbearable for many”.
He added: “And let’s not forget the social impact of our sector. For thousands of elderly and isolated individuals, their local pub, restaurant or café is a vital source of companionship and community.
“The hospitality sector is an essential driver of growth, a major employer and an irreplaceable part of our social fabric. It can drive the economy out of the stagnancy it has found itself in. It deserves recognition and support to prevent thousands of closures.
Chancellor, you must do better. If you have a plan, you must show us.
We must see it, or we cannot support it. This is not just about businesses, it’s about jobs, livelihoods, and communities, and time is running out. Will you support us or not?”