Business rates relief end could cost hospitality £1bn, says UKH

The end of business rates relief could cost hospitality businesses £928m in April, according to data from UKHospitality.

Hospitality and leisure businesses face their bills quadrupling, totalling tens of thousands of pounds per venue, if business rates relief ends as planned on 31 March.

Data from UKH found that A local pub could see an increase of £11,000, a town centre restaurant an additional £30,000, and a seaside hotel could be left with an increase of £40,000.

UKH is calling for the chancellor to introduce a new lower, permanent and universal rate for hospitality’s business rates at the Budget on 30 October.

It believes that the current business rates system unfairly penalises hospitality, with the sector paying three times more than it should.

Kate Nicholls, chief executive of UKHospitality, said: “Hospitality businesses are facing a devastating cliff-edge next April, when many will see their bills quadruple. The scale of this almost billion-pound tax bombshell is just not viable. Many will face risk of closure, be forced to let people go to stay afloat, or shelve their investment plans.

“None of those outcomes are good for the people we employ, the communities we serve, or the economic growth the Government wants to deliver. There has to be a solution that avoids this cliff edge, and a lower, permanent and universal multiplier for hospitality would deliver that. Not only would it give certainty and stability to businesses, but it would allow the Government to begin delivering on its own manifesto commitment.”

She added: “The dangers of not acting are stark – whether you’re a pub, coastal hotel or soft play centre for kids and families. At the Budget, the Chancellor can choose to act and take the brakes off the sector’s growth by avoiding this cliff-edge. I hope she does just that because inaction could be fatal for many businesses.”