Hospitality leaders call for business rates freeze

By Michelle Perrett

- Last updated on GMT

Related tags British hospitality association Taxation in the united kingdom Management Business

Hospitality leaders call for business rates freeze
Hospitality leaders are calling for a halt to the “unprecedented” hike in business rates planned for next year and are asking the government for a rates freeze.

In a letter to cabinet ministers Eric Pickles and Vince Cable, chief executives of the British Beer & Pub Association (BBPA), British Hospitality Association (BHA) and Business in Sport and Leisure (BISL) claim that next year’s rates rise of 5.6 per cent is “unprecedented”, and will add pressure to a wide range of businesses in Britain’s hospitality and leisure sector.

Brigid Simmonds, chief executive of the BBPA, said: “Council Tax has been frozen by the Government – and rightly so. Given the benefits it could bring, we need the same approach for business rates. Our leisure and hospitality sector is dominated by small business, like pubs, hotels and restaurants, and they are absolutely key to creating new jobs”

British Hospitality Association, chief executive Ufi Ibrahim, agreed: “We need a rates freeze. The VAT rise in January hit our businesses hard, with extra taxes on pub and restaurant food, while supermarket food remains zero rated. This is widening the gap between eating out and eating at home. There is no justification for further pain in what are labour-intensive parts of the economy, where jobs can be created.”

Dominic Harrison, chief executive of BISL said: “Business rates are one of the highest costs on businesses. They feed through to the prices of goods and services, reducing customer visits.

"A freeze would send a clear signal that the Government really understands that we are vital to generating growth and jobs in the economy, and growing our way out of recession. With current uncertainties, the timing couldn’t be more vital.”

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