A pub with a rateable value of £80,000 could see its rates soar by almost £33,000 if the current rates relief ends on 31 March next year, according to UKHospitality (UKH).
The trade body called for a permanent, lower and universal hospitality multiplier, which would start to deliver the Government’s manifesto pledge to rebalance the system and is backed by the Hospitality Sector Council.
Ability to survive and thrive
UKH chief executive Kate Nicholls said: “It is imperative the Government addresses the looming business rates cliff edge at the upcoming Budget, as the sector’s ability to survive and thrive depends on it.
“A new, lower multiplier for all hospitality businesses would begin to rebalance a broken system that is weighted against bricks and mortar businesses and a permanent solution would provide some certainty and stability for businesses that desperately need it.”
She warned what would happen without Government intervention at the Budget, which is set to be delivered by Chancellor Rachel Reeves on Wednesday 30 October.
Sector shackled
Nicholls added: “Without action, venues will be placed under yet more strain, giving them no choice but to divert funds that could be spent on investment and growth into paying the bills.
“While we recognise the financial challenges the new Government faces, it would be frankly irresponsible not to support a sector that generates £140bn in revenue ever year and employs more than 3.5m people.
“This is a sector that has shouldered an enormous amount of cost over the past four years and should be supported to realise its potential to generate significant growth in communities the length and breadth of the UK.
“It should be suitably supported and invested in, not shackled by dangerously high business rates and other taxes.”
The UKH boss urged the Chancellor to “act in the interests of hospitality businesses, its employees and the communities they serve” at the Budget.
Just last month (August), a survey from UKH alongside fellow trade bodies the British Beer & Pub Association, British Institute of Innkeeping and Hospitality Ulster showed 95% of hospitality businesses have experienced hikes in wage costs.
