Sacha Lord “reconsidering” Labour Party membership: Budget policies “will cripple” hospitality sector

Parklife founder Sacha Lord has said he is “reconsidering” his membership of the Labour Party over his “disillusionment with the direction of the Government’s economic policies.”

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In an open letter to Chancellor Rachel Reeves posted on social media Lord, the Labour Greater Manchester Mayor’s former nighttime economy advisor, who stepped down from the role last week following the conclusion of an Arts Council investigation into funds acquired by one of his companies, cited “swathes of job losses, venue closures and stalled expansion” in the hospitality sector, alongside forecasts that as many as 9,000 forecasted pub closures over the next 12 months as key drivers of his frustration.

The Arts Council investigation into Lord’s Primary Events Solutions concluded that it would seek to recover the £400,000+ support funding the company received, although the company was legally wound up in 2023, and Lord noted in his resignation statement that he would now turn to “championing the sector on a national level with fresh focus and energy.”

Lord’s letter to Reeves noted how the sector is a vital source of both financial and social support for many British people, from the 40% of the workforce who are under 25, to older customers for whom their local pub may be their main source of companionship and community.

“I heard Labour declare itself the party for business and growth. I no longer believe that to be the case,” Lord railed.

The letter in full read:

“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 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’re 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 cafe 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 community, and time is running out.

Will you support us or not?”

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