The former deputy prime minister said ministers must listen to the struggling sector and recognise its “value not just in rhetoric, but in policy”.
The damage is being done by a combination of large rises in rateable values, based on how much a property would cost to rent on the open market, and the end of 40% relief for the sectors most harmed by the pandemic lockdowns.
Chancellor Rachel Reeves
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Ms Rayner, who is seen as a possible Labour leadership contender to replace Sir Keir Starmer, was speaking at Liverpool’s Night Time Economy Summit on “what we need to see from Labour in the future” on Thursday.
“If we’re serious about recovery, then we must fuel the recovery of them (businesses),” she said.
“That means recognising the value not just in rhetoric, but in policy. And this is where we must be candid.
“There is, without doubt, a clear divide between policy that truly understands the nighttime economy and policy that simply applies a one-size-fits-all approach.
“Too often, policy is done to this sector, not with it. And I recognise clearly and openly that more needs to be done to engage the industry directly and consistently and respectfully, to listen, to co-design, to recognise expertise where it exists.
“Because confidence in politics matters. Businesses need to believe that they will be treated fairly, that the rules won’t shift without warning, that the long-standing structural issues will finally be addressed, not deferred again.”
Under a package of support announced by the government, pubs will receive additional help until 2029 but Chancellor Rachel Reeves has avoided more fundamental changes to business rates.
Every pub in England will get 15% off its new business rates bill and they will then be frozen in real terms for a further two years.
The Treasury’s intervention came after an intensifying backlash from industry bosses and MPs over impending tax increases.
It also seen dozens of Labour MPs, including the Chancellor, barred by pub landlords in response to November’s Budget.
Changes to business rates mean a lower multiplier used to calculate the commercial property tax.
However, this was more than offset by the removal of a Covid-era 40% discount to business rates bills for hospitality, leisure and retail businesses, as well as new property valuations.
The Chancellor introduced transitional relief to manage increases to rates bills over the next three years after the removal of sector discounts.
