Is the government calling time on local pubs?
Following the Chancellor’s budget in late November, which put an even greater tax burden on millions of people across the country, there was even worse news for our struggling hospitality industry.
This is on top of the pressures of additional duty, National Insurance and VAT. Back in September I wrote about the wider implications of taxation on business.
New analysis from UKHospitality shows that the average pub’s business rates, even with the reduced multiplier and transitional relief, will increase 15% next year – an extra £1,400.
In 2027/28, an average pub’s rates will be £4,500 higher than today, and in 2028/29 £7,000 higher. In total, over the three years, an average pub will pay an extra £12,900.
A hotel will be paying an extra £28,900 in rates next year. In 2027/28, it will be £65,000 higher than today and in 2028/29 £111,300 higher. In total, over three years, an average hotel’s rates bill will increase by £205,200.
THE SOLUTION…
IMMEDIATE
Local councils should implement an emergency business rates relief scheme to support local businesses most at risk. Once these businesses are gone, many will never return and local pubs are at the heart of many local communities.
SHORT TERM
The Government need to urgently reverse the impact of the revaluation and increase the level of business rates discount for hospitality properties from 5p to 20p, as previously proposed and permitted by law. This is as proposed by UK Hospitality.
LONGER TERM
Scrap business rates completely for Retail, Hospitality and Leisure as proposed by the Conservatives Party. Helping thousands of local high street businesses. Paid for by reducing public spending.
