Figures from brewing and hospitality industry have said called on Keir Starmer’s successor to implement “meaningful changes” such as fairer taxation and improved market access for small producers following this morning’s announcement that the current prime minster is to stand down.

This morning Keir Starmer announced his resignation as prime minster of the United Kingdom and leader of the Labour party.

In a statement, the outgoing prime minster said that “every decision I have taken has been about putting the country first” and that is why he was resigning as leader of the Labour Party.

Starmer took on the role in 2024. His chancellor Rachel Reeves has frequently been criticised for her approach and level of support provided to the UK hospitality sector.

At the start of June, hospitality businesses, teams and organisations were all urged to sign a new petition calling for Government to cut hospitality VAT to 10%, in line with Europe.

Commenting on his tenure, Elusive Brewing founder Andy Parker said that employers NICs and business rates rose, putting even more pressure on a sector that’s already squeezed.

“I’d like to see fairer taxation – addressing the huge disparity between the highly taxed brewing and hospitality sectors and large multinationals who often pay zero corporation tax,” he says.

“One positive was that Starmer’s government ordered a review of market access in our sector and I hope those findings are published soon.

“I hope the new Labour government moves ahead and makes positive changes such as increasing draft duty relief, improving market access for small producers and committing to review the not fit for purpose business rates system.”

“This is now an opportunity for them to make changes.”
Julie O’Grady, Neptune Brewery

Tom Bott is the co-founder of London-based Signature Brew. He says Starmer’s tenure was not without its positives, but that Starmer’s successor needs to recognise the value of UK hospitality

He says: “We’ve now had seven Prime Ministers since 2016. We had seven in the 42 years before that. For businesses like ours, that level of political churn makes long-term planning difficult. More than anything, hospitality needs stability, continuity and ministers who understand our sector.

“Whoever succeeds Sir Keir Starmer should recognise that hospitality is one of the UK’s great employers, taxpayers and community builders. We need support, but above all we need a level playing field. The tax burden on pubs, restaurants and breweries remains significantly higher than many of our European competitors, which holds back investment, jobs and growth.

“While hospitality businesses have had frustrations with both Sir Keir and Chancellor Reeves, it’s also fair to acknowledge some positives. Economic growth has improved, net migration is down, and the public finances appear to be moving in a more sustainable direction.

“The challenge was often one of communication. Many business owners simply never felt they understood the government’s vision or where hospitality fitted into it.”

For Bott, if Andy Burnham does emerge as Sir Keir’s successor, then his track record of engaging constructively with hospitality businesses is encouraging.

Bott explains: “He understands the social, cultural and economic value our sector brings to communities, and we’d look forward to working with him.

“As we get to know yet another Prime Minister and ministerial team, my hope is that they bring clarity, consistency and a genuine understanding that hospitality is not asking for special treatment. We’re asking for the conditions to invest, employ and grow.”

“Whoever succeeds Sir Keir Starmer should recognise that hospitality is one of the UK’s great employers, taxpayers and community builders.”
Tom Bott, Signature Brew

JW Lees is Manchester’s oldest brewery. William Lees‑Jones, managing director at the business, said Starmer’s successor needs several key qualities.

He explains: “I would like whoever succeeds Keir Starmer to be a better listener and to engage with the business community since this has been missing from the Starmer/Reeves combo.

“Hospitality has been kicked and kicked and there is so much that can be done to support including business rates review and VAT reductions and if that could happen then investment will go up and jobs will be created.”

In Liverpool, Julie O’Grady is the co-owner of Neptune brewery. She says today’s news his “hopefully a turning point for the Government to actually listen to what businesses are saying”.

She told us: “We need more support, not only VAT but also duty. The rate we pay is higher than many other countries. Reducing the rate to lower strength beer at 3.4% has only helped the macro breweries. 

“This combined with NI increases and the smaller reduced discount given on business rates is crippling many. It’s awful to see hard working breweries and bars close through no fault of their own. It can’t go on. 

“This is now an opportunity for them to make changes.”

And Christian Townsley is the co-founder of Leeds’ seminal North Bar and has nearly 40 years’ experience in the hospitality industry.

Speaking to us this morning, he says: “On one hand I really don’t revel in Keir Starmer’s resignation, it’s sad and somewhat worrying to see the country in such political disarray. 



“From a hospitality operators’ point of view however, I feel the current government have done absolutely nothing materially to support the hospitality (and in turn the brewing) industry in the UK, and Starmer and Reeves are deaf to the scale of the problem.”

“I’ve worked in hospitality and beer for 36 years and I’ve never known it be as hard for the industry as it is right now. I hope Starmer’s successor makes meaningful changes quickly, for the good of both the independent hospitality and brewing industries.”
Christian Townsley, North Bar

Townsley says that in three years we’ve seen minimum wage increase by about 25%. The effects of the changes to business rates relief has hit hard and energy costs continue to be huge. And according to UKHospitality the industry has lost around 170,000 jobs since the October 2024 budget.

He goes on: “As operators, many (including us) are forced to reduce rotas to a bare minimum. There is less incentive to employ people younger, less experienced people due to the changes in minimum wage, so there’s less opportunity for people to get their first job in hospitality.

“Hospitality is an incredible industry where many young people get their first opportunity to earn money (and pay tax), to develop confidence and social skills. This gateway into employment is being closed by the cost to employers in an already stagnant trading environment.

“The ever increasing costs from all angles puts so much pressure on hospitality operators that operators are forced to look for cheaper products wherever possible.

‘This has a detrimental effect on small breweries and it’s really visible, the diversity of brilliant beers from small brewers is simply not there as it was with many operators buying cheap rather than quality. The cost of selling great beer is becoming prohibitive and I’ve no doubt that has a huge impact on the brewing industry.”

The business owner adds that consensus in the hospitality industry is that a reduction of VAT from 20% to 10% would have a huge impact, and he would welcome this.

“From my understanding Andy Burnham has been a long supporter of a reduction in VAT for hospitality, if he were to succeed Starmer I’d hope that would be one policy that we’d see implemented sooner rather than later,” adds Townsley.

“I’ve worked in hospitality and beer for 36 years and I’ve never known it be as hard for the industry as it is right now. I hope Starmer’s successor makes meaningful changes quickly, for the good of both the independent hospitality and brewing industries.”