Andy Burnham’s longtime night-time economy adviser Sacha Lord has turned on the Chancellor over her growth plan. An entrepreneur and significant figure in the Labour party, Lord resigned as Burnham’s adviser – a role he had since 2018 – five days ago over alleged misuse of a Covid grant. Since then he has aimed the cannon at Reeves…
Lord says he is reconsidering his party membership and takes aim at the Budget’s tax rises: “I heard Labour declare itself the party for business and growth. I no longer believe that to be the case…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… Beyond these horrific economic implications, the impact on employment, particularly in our younger generations, will be devastating.” Hardly a prelude to growth…
Also chairman of the Night Time Industries Association, Lord tells Reeves to “do better” and “show us” if she has a plan for growth. Freshwater Strategy polling today shows 67% of Brits are not confident in Reeves’ ability to deliver GDP growth. A close Burnham ally launching such a scathing attack on the Chancellor will cause ears to prick up in Labour HQ…
Read Lord’s full letter below:
“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”
Speaking to Sky News off the back of Rachel Reeves’ Air Passenger Duty hike, Ryanair chief executive Michael O’Leary said:
“Labour is dependent on those Red Wall seats, and yet every move she makes poisons economic growth and damages the UK’s recovery… it’s the Chancellor who stumbles from policy misstep to policy misstep… I think her policy decisions are incredibly stupid.”