Deep reform of business rates 'cannot be done' before April

During a briefing on Friday 20 September, UKH deputy chief executive Allen Simpson said “substantial, deep reform” of the system, a Labour manifesto pledge, “cannot be done” between now and 1 April 2025.

In addition, the deputy chief executive warned the sector could more “mass closures” once the current rates relief ends next year.

He said: “Substantial, deep reform of the business rate system cannot be done by 1 April.

Simply unaffordable 

“We do believe if no reform to business rates is achieved on or before 1 April, that quadrupling a business rates bill is simply unaffordable for many pubs, and there’ll be mass closures, not just pubs, but others.”

According to Simpson, a city centre pub with an £80,000 ratable value could see its rates go up from £11,000 to £44,000 as of April next year.

Though the deputy chief executive added the trade body did expect to see “some movement” to tackle business rates in the future.

He added the current system penalised larger businesses and those wanting to expand, describing it as an “anti-growth proposition” forcing many firms to “unacceptable” tax rates.

Universal solution 

Simpson continued: “Our view is that a permanently reduced multiplier is a more sustainable and more universal solution than aiming for a continued reduction of business rates.”

To remedy this, UKH has called for the multiplier itself to be reduced in next month’s Budget, one of six key asks from the trade body.

UKH also urged the Government to reduce VAT in line with European rivals, support businesses with increased staffing costs, boost green investment within the sector as well as reform both the planning system and apprenticeship levy.

However, Simpson stated how the Government tackles these issues will depend on how Chancellor Rachel Reeves “balances her fiscal tax and spending”.