The statement comes as ministers prepare to revisit the controversial business rates changes following widespread sector backlash.
‘More severe than expected’
Speaking on Times Radio, Kyle said the Government had been “listening” to hospitality businesses since the Budget and acknowledged that the impact on pubs and other operators had been more severe than expected.
“Just to be really clear about what happened and didn’t happen during the Budget, we actually lowered the overall rate for business rate, but an independent reviewer then reviewed the rate valuation of each property. We didn’t have access to that information before making these decisions,” he said.
“Now we heard, and this government is a listening government, straight away that there were some businesses that were really impacted. I was straight out of the traps, and I was up in Birmingham meeting the hospitality sector.
“I’ve engaged fulsomely right the way through, with lots of different people from across the hospitality sector, and particularly pubs because pubs are in a very, very unique position, and deep into communities.
‘We’ve been listening’
“We have been listening, and there will be announcements and certainly more to be said in the coming days.”
The Government’s comments come amid expectations of an imminent U turn, following intense lobbying from operators who warned that the new rateable values and the removal of Covid era relief would result in steep increases from April.
New modelling from UKHospitality forecasts that 2,076 hospitality venues could close this year without a sector wide response. Its analysis suggests 963 restaurants, 574 hotels and 540 pubs are at risk if the current proposals stand.
According to the trade body, the average hotel faces a £28,900 increase next year and £205,200 over three years, equivalent to a 115 per cent rise. The average pub will see a 15 per cent uplift next year, around £1,400, rising to a 76 per cent increase over the three year period.
UKHospitality is calling for the Government to raise the business rates discount for hospitality from 5p to 20p, the maximum allowed under current legislation
Chair Kate Nicholls said: “Staggering increases to business rates will affect the entire hospitality sector and without a hospitality wide solution, we will see significant business closures.
“Thousands of venues, particularly neighbourhood restaurants and local hotels, will be forced to close for good as a result of the significant rates rises they’re facing.
“This is yet another blow to a hospitality sector that bears the highest tax burden in the economy, and has already been disproportionately burdened by increases to NICs, wages, energy and other inputs.
“Hospitality is one of the nation’s biggest employers and has an incredible potential to grow and create jobs, but the money coming in the front door is simply not enough to offset the rocketing costs of doing business. All of this undermines the Government’s objectives to grow the economy and help more people back into work.
“We need a hospitality wide solution that averts damaging business rates hikes in April. The Government needs to implement the maximum possible 20p discount to the multiplier for all hospitality properties.”
