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Hospitality businesses will face a £3.6bn bill next April if business rates increase in line with inflation and current relief is ended, a business rates increase of £900m, on top of the £2.7bn the sector currently pays.
Ahead of the Autumn Statement this week, UKHospitality CEO Kate Nicholls is urging the chancellor to extend current business rates relief for the sector and scrap plans to increase rates in line with inflation.
She said: “Hospitality has been hit harder than any other sector by inflation, with many already struggling to pay their bills. To increase business rates bills by a third and hang a £900m millstone around the neck of the sector would cause devastation.
“Our pubs, bars, restaurants, coffee shops and hotels, to name a few, are so often the pillars of our community and we would lose countless venues if this went ahead. For those that do survive, they would sadly have no option but to pass those unprecedented costs onto customers.”
She added: “The Government clearly understands the pressures the sector is under due to rising costs and I would urge it not to compound issues by rising bills further. What it needs to do to ensure the sector survives is extend the current relief for the entire sector and ditch any plans to increase rates in line with inflation.
“Our sector has such potential to expand, deliver economic growth and support fantastic careers, but it is simply unable to do so with more and more cost being put on it at a time of national crisis. If the Government wants to prove it’s on the side of business and drive investment, it won’t go ahead with a business rates hike that will devastate hospitality businesses.”
