UKHospitality urges government to continue offering business rates relief

Hospitality sector bills could rise by £220m next year should business rates increase with inflation, according to analysis from UKHospitality.

The Sunday Times reported that restaurants, pubs and hotels face £630m from rates relief ending. This, combined with soaring business rates, would amount to an additional £850m for hospitality businesses to pay in the new financial year.

Kate Nicholls, chief executive of UKHospitality, told the paper: “The ending of current business rates relief next April could mean an additional £630m hit, while an inflationary increase to rates adds a further £220m. Together, it’s an almost billion-pound bill that could put businesses on the brink.

“We need to see urgent action from government to avoid this upcoming bill, with firm commitments that there will be no inflationary increase to the total sum of business rates, and that business rates relief will continue for hospitality businesses.”

The warning comes after The Sunday Times reported business rates are expected to increase next April under the government’s “multiplier”, which will be pegged to inflation next month.

Business rates had been frozen in a £13.6b support package announced by chancellor Jeremy Hunt last autumn, which had capped rates at £110,000 per firm across retail hospitality and leisure businesses.