170 hospitality bosses call for business rates action ahead of Budget
They have warned that without action, ‘investment will be curtailed, employment opportunities squandered and, ultimately, there will be higher levels of business failure’
170 hospitality leaders have backed UKHospitality’s call for a lower level of business rates for the sector ahead of the Labour party’s first Budget at the end of the month.
In an open letter to the chancellor, the CEOs of Britain’s most well-known and biggest pub groups such as Fuller’s, Greene King, JD Wetherspoons, Stonegate Group and Young’s Pubs, have backed the call, alongside the bosses of high street staples like Burger King, Caffe Nero, IHG Hotels, KFC, and Pizza Pilgrims.
The sector has united behind the need for action to avert business rates bills quadrupling in April, if current relief ends as planned on March 31. Inaction would cost the sector £914m in additional rates bills.
They have warned that without action, “investment will be curtailed, employment opportunities squandered and, ultimately, there will be higher levels of business failure”.
The hospitality leaders stated that this Budget is the “last chance to prevent bills quadrupling for high streets across the country”.
The letter said: “We are asking you to grasp this opportunity to deliver your manifesto commitment to fix business rates, and protect businesses.
“We propose that your government introduces a new lower, permanent and universal multiplier for the hospitality sector, to be adopted across all nations of the UK. All hospitality businesses should benefit from that multiplier, removing the cap that has acted as a disincentive to growth as employers decide that opening a second premises is simply not worth the cost.”
Kate Nicholls, chief executive of UKHospitality, added: “This 170-strong cohort of business leaders across hospitality shows just how important addressing business rates is at the Budget.
“Inaction will lead to bills quadrupling and more venues shutting their doors for good, which will rob our towns and cities of vital community hubs.Further closures will be so detrimental to the Government’s growth agenda and put a dent in our sector’s ability to create places where people want to live, work and invest.”
She concluded: “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.”
