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The UK is facing a hospitality crisis,
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and even Angela Rayner and Andy Burnham
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agree. The former deputy PM and the
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mayor of Manchester, who are both
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front-runners to take over from Keir
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Starmer, have come out swinging against
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the government's current tax regime.
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They've both broken rank with the
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government's line on hospitality to
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attack some of the causes of the massive
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pressure on the sector. Angela Rayner,
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who was the leading voice behind the
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government's employment rights
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legislation, acknowledged that the
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higher minimum wage is making it harder
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for bars, restaurants, and pubs to
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actually employ people. Rayner has
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warned that the government must start
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relieving the sector before more local
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landmarks vanish from our high streets
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forever. While the Chancellor, Rachel
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Reeves, recently announced a 300 million
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pound support package, critics,
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including those within her own party,
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have said that it doesn't go nearly far
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enough. For many pub landlords, business
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rates are the final nail in the coffin.
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Some venues have seen their tax bills
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double, jumping from around 50,000 to
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over 100,000 almost overnight. Andy
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Burnham is calling for a total overhaul
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of the system. He argues that we need a
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tax regime that recognizes the actual
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value the hospitality adds to the
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economy. According to Burnham, it's not
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just about pints, it's about live music,
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bars, restaurants, and other venues,
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too. He says the current system is
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outdated, and it's failing local
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businesses around the UK. And with 500
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pubs predicted to close this year alone,
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the pressure on Downing Street is
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mounting. Rayner and Burnham's
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interventions suggest a deepening divide
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within the party about how to achieve
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economic growth without crushing the
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lifeblood of the UK high street. So,
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what do you think? Will the government
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perform yet another U-turn on
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hospitality, or are we going to continue
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to see local pubs die out up and down
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the country? Let us know what you think