UKH: reductions under reformed business rates must be reflected fast

20-Jul-2022 - Last updated on 20-Jul-2022 at 09:19 GMT

Appeal to Government: UKHospitality has also called for a cap on any business rates increases (credit: Getty/AlexKozlov)

Related tags Finance Legislation Social responsibility

Sector businesses must be granted any reduction under reformed business rates as “rapidly as possible” says UKHospitality.

The trade body’s request came in response to the Government’s consultation on transition for the next business rates revaluation.

New rateable values, due to be introduced in April 2023, will come at a time of “unprecedented circumstances” for the industry, something that should be reflected in the 2023 revaluation, UKHospitality said.

Soaring costs

UKHospitality highlighted the profound impact of the pandemic on hospitality property values and the financial fragility of hospitality businesses. It said most are carrying heavy debt and facing soaring costs and there is therefore a need to ensure any reduction in business rates is reflected in the bills as rapidly as possible.

The trade body has called for:

• Assurance the scheme will allow for all businesses to reach their true reduced value from April 2023

• A cap on how much bills can rise

• No RPI increase in the total sum of business rates

• The continuation of business rate reliefs for businesses hit hardest by the pandemic

Cost must be reduced

UKHospitality chief executive Kate Nicholls said: “The priority must be enabling reductions in bills to be felt immediately and the Government needs to ensure that the cost is reduced for those sectors hit hardest by the pandemic and in most need of support.

“We strongly believe the Government needs to reflect the unprecedented impact of the pandemic, compounded by the impact of an economic downturn and high levels of inflation, in the new rates scheme.

“If this is taken into account, the hospitality sector can play its full part in the wider UK economic recovery, creating jobs and delivering skills and boosting our high streets and communities.”

The hospitality sector creates £130bn in economic activity and generates £39bn of tax for the Exchequer, funding vital services. It represents 10% of UK employment, 6% of businesses and 5% of GDP. Hospitality is the third largest private sector employer in the UK – double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined.