Pubs, bars and hotels have reported a surge in optimism dubbed the "Burnham bounce" following Prime Minister Andy Burnham's business rates discount for pubs, clubs and live music venues, according to a survey of trade bodies. However, businesses warn this goodwill could disappear unless the government delivers further tax relief, as rising costs continue to weigh heavily on the sector, which is worth roughly £100bn to the UK economy.

The survey found that 37% of hospitality and brewing businesses now believe the government will benefit the sector, more than double the 18% recorded before the business rates announcement. Despite this improved sentiment, three-quarters of respondents identified tax—particularly VAT—as the biggest barrier facing the industry, with political instability cited by 37% as the second-largest concern. Trade bodies, including UK Hospitality and the British Beer & Pubs Association, are calling for wider business rates reform, changes to employer national insurance contributions, and a VAT cut from 20% to 10%, a petition for which has attracted over 330,000 signatures, though critics argue such a cut would be costly and disproportionately benefit large chains.