Andy Burnham’s rates intervention is welcome but the wider hospitality industry needs support - Jonny Noble

For many bar, club and music venue operators, Andy Burnham’s rate reduction is finally a sign someone in public life is acknowledging the ongoing challenges the sector is facing. Hospitality cannot keep absorbing rising costs, fragile footfall, changing consumer habits and an outdated tax burden without meaningful support.

A rates reduction is a positive and practical first step. It puts money back into businesses that have had very little breathing space since the pandemic. Bars and clubs are vital parts of our evening and night-time economy. They bring people into our town and city centres, support jobs, generate supply-chain activity and help create the atmosphere that makes places feel alive.

But it’s important to recognise that restaurants, cafes and the wider hospitality sector are facing the same pressures. Any rates intervention must not stop at one part of the industry. In fact, a VAT reduction from 20 per cent to 10 per cent for all hospitality businesses would be the kind of policy change that would make a significant impact.

This would not solve every problem, but it would provide immediate relief to one of the sectors hardest hit over recent years. Many businesses are still dealing with debt taken on during Covid, while also facing higher wages, energy costs, food and drink inflation, insurance, rent and rates. Margins in hospitality were already tight. For many independent businesses in particular, they are now almost impossible.

When a restaurant closes, a town or city centre loses more than a business. It loses jobs, choice, reasons to visit, reasons to stay longer and reasons to come back. Empty units affect neighbouring traders. Reduced footfall affects retailers, cultural venues, transport operators and the wider perception of a place.

That is why VAT reform must be part of a wider conversation about how we support our high streets and city centres in the long term.

Business rates have needed fundamental reform for many years. The current system is outdated and unfair, particularly for bricks-and-mortar operators who are rooted in our towns and cities. They often carry a heavier burden than online competitors who do not face the same costs.

Our town and city centres are not simply commercial zones. They are where people meet, celebrate, work, eat, shop, socialise and experience culture. If we want them to thrive, the tax system must support the businesses that keep them going.

This is where Business Improvement Districts have a key role to play. BIDs are close to the ground. We speak to businesses every day. We understand the cumulative impact of costs, policy decisions, transport issues, safety concerns and changing footfall patterns. We also see the ambition, resilience and creativity that still exists across our centres.

Across the UK, BIDs have lobbied local and national government for many years on the need for fairer support, fairer taxation and a stronger voice for businesses. We are a unified voice for the business sector, but we are also practical delivery bodies. We invest in place marketing, events, safety initiatives, cleaning, business support, visitor experience and partnership working.

In Bradford, as in many other places, the future of the city centre depends on collaboration. Businesses, councils, police, transport bodies, cultural organisations and government all have a role to play. But support must match the scale of the challenge.

Hospitality has shown extraordinary resilience. Now it needs room to breathe, a fairer system, and a government willing to back the places that bring our towns and cities to life.

Jonny Noble is CEO of Bradford BID.