Open Letter to Chancellor Rachel Reeves MP

A Letter to the Chancellor of the Exchequer, Rt Hon. Rachel Reeves MP

Dear Chancellor,

I write to you as a long-standing advocate for the hospitality sector, deeply concerned about the precarious situation facing independent and small businesses in our industry. The sector employs 3.5 million people and contributes £54 billion in tax receipts to the UK economy, yet recent government decisions threaten its very survival.

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.

The policies outlined in the Autumn Budget and set to be introduced in April, will cripple businesses across the sector, and the consequences of these plans are already becoming visible.

We have evidence, Chancellor, of swathes of job losses, venue closures and stalled expansion and forecasters are predicting 9,000 pub closures within the next 12 months. Only last week I heard of one pub chain that has halted five new site developments as a direct result of these decisions.

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?

Beyond these horrific economic implications, the impact on employment, particularly in our younger generations, will be devastating. We are the third largest employer in the UK. 40% of our workforce is under 25. Closures will throw these young people to the wolves at a time when the cost of living is already unbearable for many.

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?

Yours sincerely,

Sacha Lord

Night Time Economy Adviser

Chair, Night Time Industries Association (NTIA)

Labour Party member