Angela Rayner warns hospitality and nightlife firms face mass closures without urgent government relief as she calls for targeted support in Britain’s high streets

Angela Rayner has taken a sharp stance on the challenges facing Britain’s high streets, openly criticizing Labour leadership over what she described as “punishing” business rates.

Speaking at a night-time economy summit in Liverpool, the former deputy prime minister stressed the urgent need for stronger government support for hospitality and nightlife businesses, which she says are vital to revitalizing local communities.

Rayner, who stepped down from the Government last year amid a tax controversy, made clear that she wants more proactive measures from Sir Keir Starmer and Chancellor Rachel Reeves to deliver the promises Labour made before the last general election.

“We need to put rocket boosters under what we promised,” she said, calling for immediate action to help struggling firms weather rising costs.

Night-Time Economy Needs a Champion

Rayner emphasized the importance of appointing a dedicated “night-time economy” minister, pointing to the growing pressures on bars, restaurants, and live music venues.

“The night-time economy has endured years of hardship,” she said, noting that many businesses were already under strain even before the Covid-19 pandemic.

Energy costs, high VAT, and soaring business rates have left many operators struggling to survive, she warned.

“Across Europe, governments see hospitality as an investment, not just handouts. We need a plan to stabilize costs and give businesses breathing room.”

Praise for Local Leadership and Innovative Initiatives

While critical of national leaders, Rayner praised local initiatives aimed at boosting nightlife.

She singled out Greater Manchester Mayor Andy Burnham for improving late-night transport, making it easier for people to enjoy nightlife safely.

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She also commended London Mayor Sir Sadiq Khan for his approach to city-wide licensing of night-time venues.

These measures, she argued, could serve as models for a broader national strategy.

Business Rates, VAT, and Rising Costs

Rayner did not hold back when discussing financial pressures on hospitality businesses.

She highlighted how pubs, hotels, cafes, and restaurants face “punishingly high” business rates while energy bills, supply chain costs, and minimum wage increases continue to rise.

While Reeves has introduced a 15% discount for pubs and live music venues starting in April, Rayner noted that many other businesses remain unsupported, leaving them vulnerable to closures and job losses.

She stressed that high streets cannot revive without sustained support for these sectors, calling the hospitality and night-time economy the “lifeblood” of local communities.

Lessons From Her Time in Government

Reflecting on her previous cabinet role as housing, communities, and local government secretary, Rayner admitted frustrations with the planning system and Whitehall bureaucracy.

Departments often work in isolation, creating unintended consequences that hinder progress.

“All departments will do things without fully understanding the knock-on effects,” she explained, urging a more coordinated approach to policy that could truly support small businesses.

What’s Next?

Rayner’s comments come at a politically sensitive time.

Sir Keir Starmer faces mounting pressure after the Peter Mandelson scandal, with Scottish Labour leader Anas Sarwar calling for his resignation.

Rayner, though a potential contender herself, publicly reaffirmed her support for Starmer while highlighting the urgency of economic issues facing everyday communities.

Observers suggest Labour may now consider more tangible initiatives for high streets and the night-time economy, including targeted relief packages, tax reforms, and dedicated ministerial oversight to prevent business closures and job losses.

Summary

Angela Rayner is making a bold push to put the spotlight on Britain’s struggling hospitality sector, criticizing top Labour leaders while praising local officials for proactive measures.

She argues that reviving high streets and supporting night-time businesses requires coordinated government action, financial relief, and strategic planning.

Her intervention signals both political positioning within Labour and a broader concern for economic revival in local communities.