UKHospitality has once again raised concerns over the looming business rates crisis, calling on the Government to take urgent action in the upcoming Budget.
It is urging the Government to reform the current business rates system, which it argues is placing unsustainable financial pressure on pubs, restaurants, and other venues.
Without intervention, businesses could face significant increases in their business rates.
For instance, a pub with a rateable value of £80,000 may experience a staggering £33,000 rise in rates when the relief provided during the pandemic comes to an end.
Kate Nicholls, CEO of UKHospitality, emphasised that the sector is already dealing with "dangerously high" business rates, which are hindering growth and threatening jobs.
Nicholls has called for the implementation of a permanent lower hospitality multiplier, which would give businesses the stability they need to recover and thrive.
She stated, "The current system shackles businesses with rates they simply cannot afford." With high inflation, energy costs, and wage bills already squeezing profit margins, the need for relief has never been more urgent.
It is widely believed that significant reform would not only safeguard the future of many businesses but also encourage investment and employment in the hospitality sector, which remains a vital contributor to the UK economy.
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