Hospitality leaders demand business rates action in Budget

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Leaders of some of the UK's biggest hospitality groups have signed an open letter to the Chancellor calling for a lower level of business rates for the sector.

Some 170 hospitality bosses have backed the letter, written by UKHospitality, which warns that the sector could face £914m in additional rates bills if current relief ends as planned on 31 March next year. 

The letter states that without action, investment will be curtailed, employment opportunities squandered and, ultimately, there will be higher levels of business failure.

“This Budget is the last chance to prevent bills quadrupling for high streets across the country. We are asking you to grasp this opportunity to deliver your manifesto commitment to fix business rates, and protect businesses,” the letter says.  

“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.”

Among the signatories is Burger King CEO Alasdair Murdoch, D&D London co-founder David Loewi, and chef Rick Stein. 

“This 170-strong cohort of business leaders across hospitality shows just how important addressing business rates is at the Budget,” says Kate Nicholls, chief executive of UKHospitality.  

“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.

“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.”