UKHospitality has reiterated its call for the government to apply the maximum possible discount for hospitality’s business rates at the Budget.
Kate Nicholls
The call comes after the government published an interim report on business rates reform that sets out a number of proposals to improve the system. This includes changes to Small Business Rates Relief and fixing business rates ‘cliff edges’, where rates bills jump significantly between bandings.
UKHospitality says these proposals are ‘positive’ and will help to rebalance the system. But it has reinforced the critical need for the government to apply the maximum possible discount to the multiplier for all hospitality properties under £500,000 rateable value.
Legislation that passed this year, which UKHospitality was instrumental in securing, gives the government the power to apply a discount to the multiplier of up to 20p in the pound.
“For too long, the broken business rates system has unfairly punished hospitality businesses, and I’m pleased that the government is taking action to reform it, following many years of campaigning from UKHospitality,” said the trade association’s chair, Kate Nicholls.
“These measures to remove punitive cliff-edges and barriers to investment are positive and will help to rebalance the system, as will the government’s commitment to lower business rates bills for hospitality businesses.
“Applying the maximum possible discount to the multiplier for all hospitality properties under £500,000 rateable value at the Budget in November is critical. That is the most significant and meaningful benefit that can come from these reforms, particularly with anticipated increases in rateable values coming into effect next April.”
She added: “The maximum discount should be introduced alongside a zero rate for hospitality properties over £500,000 rateable value, to ensure the reform is in keeping with the government’s intention to level the playing field for the entire high street.
“We are pleased that the government has recognised the harm that large increases in rateable values will cause to hospitality and has committed to transitional relief. This needs to be meaningful and consider the effect of existing cliff edges.
“With hospitality businesses finding themselves taxed out as a result of cost increase after cost increase, lowering business rates, fixing [National Insurance contributions] and cutting VAT is the action we need to see the government take at the Budget.”
• Heartwood Inns’ The Ragged Robin, in Godalming, hosted a visit from local MP Jeremy Hunt, following its multi-million-pound refurbishment.
The visit saw Mr Hunt tour the premises, meet staff, and discuss the importance of hospitality businesses to the local economy of Godalming and the wider constituency of Godalming and Ash.
Formerly known as The Manor Inn, The Ragged Robin, which opened in June, has 19 boutique bedrooms, 213 internal covers across the bar and dining room, and a further 124 covers in the spacious garden, on the banks of the River Wey.
Guests visiting the pub can enjoy a seasonally changing menu and drinks. Heartwood has a three-star rating from the Sustainable Restaurant Association, the highest rating possible.
• Hospitality sales rose by 2.9% in August, according to labour management specialist S4labour, with London venues seeing a 10.5% rise.
“London’s strong performance this August was likely boosted by the warmer, more settled weather, compared to last year, which encouraged greater footfall across both wet-led and dry-led venues,” said S4labour chief growth officer Richard Hartley.
“However, ongoing cost pressures and more cautious consumer spending continue to temper growth outside the capital.”
• A third Ludo Sports Bar and Kitchen is to open, in Cardiff. The first site was in Bath, followed by a second in Exeter. It is a joint venture between St Austell Brewery and ETM Group.
• Urban Pubs and Bars has acquired two new London sites. It is taking on The Bald Faced Stag, to East Finchley, and The St John’s Tavern, in Archway.
