Ahead of the Autumn Budget, hundreds of UK hospitality groups and pubs have issued a plea for permanent measures on business rates relief. In an open letter addressed to Rachel Reeves, leaders in the hospitality industry urged for enduring action, including the extension and reduction of business rates relief for their sector.
The letter, which garnered 170 signatures from various high street groups such as Pizza Pilgrims, Fuller’s, Greene King, and JD Wetherspoon, warned that without intervention, high street investments “will be curtailed, employment opportunities will be squandered, and ultimately, we will see higher levels of business failures.”
The letter further stated: “This Budget is the last chance to prevent bills quadrupling for high streets across the country. We are asking you to grasp this opportunity to deliver your manifesto commitment to fix business rates, and protect businesses,” It proposed that the Government introduce a new lower, permanent and universal multiplier for the hospitality sector, applicable across all nations of the UK. Currently, the business rate relief stands at 75 per cent, but it is set to expire on 31 March.
Kate Nicholls, chief executive of UKHospitality, warned that inaction would undermine the government’s current growth agenda. “If we don’t want to lose out on vital investment, job creation and regeneration of our high streets, then the Chancellor needs to act to introduce a lower level of business rates for hospitality at the Budget,” Nichols concluded.
A bi-monthly survey of over 500 mid-sized businesses conducted by advisory firm BDO underscored a call for action on business rates, as reported by City AM.
Around 18 per cent expressed their wish to see the government “commit to replacing” business rates, potentially with the introduction of a business income tax. This figure rose to 27 per cent within the retail sector.
“Accounting for one in three private sector jobs and providing revenues of £1.6tn, the contributions of these businesses to the UK economy and their potential to scale-up should not be overlooked by policymakers,” stated Richard Austin, partner at BDO.
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