The bosses of 170 major pub and restaurant chains have urged the Chancellor to prevent a ‘business rates cliff edge’ and push for growth at the Budget.
Greene King, JD Wetherspoon and Slug & Lettuce owner Stonegate are among those who have written to ask Rachel Reeves to halt a quadrupling of the taxes in April.
Organised by the group UKHospitality, the letter has also been signed by Caffe Nero, Burger King and KFC who are worried that ‘investment in our high streets will be curtailed, employment opportunities squandered, and we will see higher levels of business failure.’
It said: ‘We set out how we can avoid this cliff edge and push for growth. Now is the time to deliver the fundamental change that you have promised and that will deliver so much.’
Rates are due to rise by nearly £1billion in April, when a Covid-era aid expires. With the relief, all hospitality and leisure businesses have 75 per cent shaved off their bill.
Concern: Greene King, JD Wetherspoon and Slug & Lettuce owner Stonegate are among those who have written to ask Rachel Reeves to halt a quadrupling of the taxes
The industry has been lobbying for an extension to this relief, as well as permanent reform promised by Labour in its manifesto. ‘Our tax system discourages people from running high street businesses [when] we should be encouraging them,’ the letter adds.
It is a major concern alongside potential increases including to employers’ National Insurance contributions (NICs). Shepherd Neame chief executive Jonathan Neame said his sector was already ‘the most over-taxed and over-regulated in the world’. He added: ‘We need less tax and less regulation. Any further taxes will be inflationary and most unwelcome.’
Nick Mackenzie, chief executive of Greene King, said: ‘Increasing the cost of doing business risks limiting pubs’ ability to invest, create employment and drive growth.’
Milsom Hotels & Restaurants is one small business dreading a £110,000 increase next spring.
Paul Milsom, whose family have run four venues in Essex for 70 years, said ‘pernicious’ rates had ‘spiralled out of control’. ‘Our industry is screaming and it is going to be a big shock if the Government doesn’t do something,’ he added.
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