Ian Mitty, licensee of the Holt’s Arms in Billinge, was mentioned by the new prime minister in a social media post on Tuesday, reflecting on his first week in Downing Street.
In the post, Mr Burnham recalled visiting the pub during the Makerfield by-election campaign and speaking to Ian about the pressures facing the hospitality sector.
Andy Burnham at the Holts Arms in Billinge (Image: Labour)
The prime minister wrote that Ian had told him how difficult rising costs and overheads had become for pubs and said that conversation helped reinforce the need for action.
Mr Burnham this month announced a 20 per cent cut in business rates for pubs, clubs and live music venues.
Speaking to the St Helens Star, Ian said he was pleased to see support being offered but believes reducing VAT for hospitality businesses remains the industry’s biggest priority.
He said: “When Andy came into the pub during the by-election, he hadn’t announced it yet, but he told us he was planning a 20 per cent cut in business rates.
“We had a chat about that and I said it’s a start, but we need more.
“If you look across the industry, people like Tom Kerridge and Simon Rogan have been campaigning for VAT on hospitality to be reduced to 10 per cent, in line with much of Europe. That’s what we need to do.”
Ian said he discussed the challenges facing hospitality with the then-Makerfield candidate, including the impact of Covid and rising employment costs.
Andy Burnham speaking with Holts Arms boss Ian Mitty (Image: Ian Mitty)
He said: “I went through the problems we’ve faced over the last few years, from Covid and then coming out of Covid, to Rachel Reeves’ budget, which absolutely shafted us with the National Insurance changes, the increase in the National Living Wage and the business rates revaluation.
“None of us are arguing against people getting paid more, but all of those things together put a massive strain on hospitality businesses.”
The Billinge pub boss, who has worked in hospitality for 42 years, said he had never known the industry face such difficult conditions.
He said: “We’re busier than we’ve ever been, but we make less money than we used to because the cost base is so high.
“You can’t just pass those costs on to customers because people couldn’t afford to eat out. The maths doesn’t work.
“The change in VAT would save an awful lot of pubs.”
Despite his concerns, Ian said he was more hopeful about the future since Mr Burnham entered Number 10.
“I’m more optimistic than I was before Andy got elected,” he said.
“The whole industry is in the same position. It’s a very worrying time for hospitality.
“When all the top chefs, gastro pubs and restaurants are telling the same story, that’s not a coincidence. Everyone is saying we need help.”
Ian was among guests invited to Downing Street to welcome Mr Burnham as prime minister last week.
Asked what he would say if the prime minister walked into the Holt’s Arms tomorrow, he said: “I’d say it’s a good start, but we need more.
“We don’t want to sound like Oliver asking for more, but if the government genuinely wants to keep pubs, restaurants and cafes open, there needs to be more help or a restructuring of the way hospitality is taxed.”
He also highlighted the role pubs play in their communities beyond simply serving food and drink.
“In the last few weeks we’ve hosted a christening, a leaving party for somebody moving abroad, a school football presentation and two funerals,” he said.
“You can’t do that in a garden centre. You can’t do it in Starbucks. You can’t do it in Tesco.
“You need pubs and cafes in local communities that can bring people together.
“Billinge is a lovely place to live and the pub is vital to the community. Every pub in the village is part of that community.
“You can’t lose that. But we could quite easily lose it.”