This week the UK Government unveiled a £100m business rates support package for pubs, including a 15% cut to new business rates bills from April followed by a two-year real terms freeze and a review into how rates are calculated for pubs.
Following the news, the head of UKH Cymru and UKH Scotland have urged the respective devolved Governments to use new funding to support the hospitality sector.
“The business rates system is broken and now it’s in danger of breaking hospitality businesses in Wales,” UKH Cymru executive director David Chapman said.
Cliff-edge
“Welsh hospitality faces an April cliff-edge because of huge rates hikes, totalling a colossal £122m increase over the next three years.
“It is vital that every penny the Welsh Government receives as a result of the new hospitality financial support announced in England – and even more, if possible – is committed to a sector-wide solution to alleviate these damaging increases.
“I would urge it to engage with us on a package of support measures to reduce business rates bills from April, which will help protect employment and local communities. It can also help begin the process of growth that the nation desperately needs.”
Announcing the measures, the Treasury said the package would save the average pub £1,650 in 2026 to 27, with around 75% of pubs expected to see their bills fall or remain flat next year.
Steep hikes
The announcement formed part of a wider intervention aimed at supporting high streets, with ministers also confirming plans for a new ‘High Streets Strategy’ to be published later this year, as well as further licensing and planning reforms for pubs.
Meanwhile, after new data from UKH earlier this week found Scottish pub closures were 50% higher than in England, UKH Scotland executive director Leon Thompson urged the Scottish Government to make good on its promise in the recent Budget to support the sector.
He continued: “Like in England, Scottish hospitality businesses are facing steep hikes to business rates. Hotels are facing average increases of £68,000 over three years. Pubs are set for an average £36,000 increase. This is a hospitality-wide problem that needs a hospitality-wide solution.
“The Scottish Government should rapidly outline its plans to bring forward a support package for the entire sector, to support business viability, jobs and the communities that rely on these businesses.
“I stand ready to work collaboratively with the Scottish Government on a package that best supports the hospitality sector.”
