UKHospitality, British Retail Consortium, Association of Convenience Stores, British Independent Retail Association and ukactive have written to the Chancellor, urging him to freeze the business rates multiplier and extend existing reliefs for a further year at the upcoming Autumn Statement.
In a joint letter, the coalition of organisations warns of the ramifications dramatic increases in business rates.
“An inflationary increase in the business rates multiplier and removal of reliefs would be disastrous for our sectors. It will mean business failures, job losses and boarded up properties in our high streets, denying people their livelihoods and their social pleasures.”
The inflation-linked increase to the business rates multiplier is expected to cost hospitality businesses £234m, with an end to current relief costing hospitality £630m.
The letter continues, “by providing this critical business assistance you will allow us to continue to provide our much-loved services to our communities, invest in our high streets and continue to employ millions of people in every part of the country.
”An inflationary increase in the business rates multiplier and removal of reliefs would be disastrous for our sectors. It will mean business failures, job losses and boarded up properties in our high streets, denying people their livelihoods and their social pleasures.
Meanwhile, a recent survey of UKHospitality members showed that 66% of businesses would reduce investment, 61% would raise prices and 41% would reduce opening hours if rates relief was removed.
Kate Nicholls, Chief Executive of UKHospitality, added, “Freezing rates and extending relief will be a lifeline for a sector that simply cannot absorb any more costs. Inaction will leave hospitality businesses with no choice but to put up prices, open less or, in the worst-case scenario, shut their doors for good.
“Pubs, restaurants, cafes and hotels, to name a few, act as pillars of their communities and they want to continue in that central role, as well as driving economic growth and providing countless jobs. Action on business rates at the Autumn Statement is critical to that.”
