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More than 130 hotel and holiday park operators have urged the Chancellor to introduce a hospitality-wide solution to business rates, warning that looming increases threaten jobs, investment and long-term viability across the sector.
In a joint letter, businesses including Butlin’s, Haven, Hilton, IHG Hotels and Resorts, Leonardo Hotels, Marriott International, Parkdean Resorts, Travelodge and Whitbread said higher rates would be the most significant challenge facing accommodation providers over the next three years.
The signatories warned that the planned rises would be difficult to absorb and could force operators to cut employment or investment, while passing costs on to guests would add to existing cost-of-living pressures.
Analysis by UKHospitality, based on Valuation Office Agency data, shows average hotel business rates bills are set to rise by 115% over the next three years, reaching £205,200.
The letter said accommodation businesses, many of them small and medium-sized firms, would face “significant increases” in their bills as transitional relief is withdrawn, exacerbating existing pressures from higher build costs and concerns over new tourism taxes.
It added that while recent government support for hospitality had been welcomed, measures focused solely on pubs would leave much of the sector exposed, arguing instead for a whole-sector approach.
Kate Nicholls, chair of UKHospitality, said: “Hotels and holiday parks are the hardest hit by business rates hikes, facing 115% increases. As this coalition so clearly sets out, this will only have adverse impacts on employment, investment and, in some cases, business viability.
“Accommodation businesses will unfortunately have no choice but to pass these additional costs onto the consumer, which will only worsen the cost-of-living crisis and drive inflation.”
The letter was signed by a broad coalition of operators ranging from major international hotel groups to independent hotels, holiday parks and cottage providers across the UK, underlining the scale of concern within the accommodation sector.
