Some of the biggest pub groups, cafes and restaurant chains in the UK are calling on the Westminster Government to avoid huge numbers of failures by taking immediate action to reform business rates.
Belhaven owner Greene King, as well as JD Wetherspoons and Mitchell’s & Butlers are backing the call alongside high street groups such as Burger King, Caffe Nero, IHG Hotels, KFC, and the restaurateur Rick Stein.
Chris Wayne-Wills, chief executive of Scotland-based Crerar Hotel Group, is among 170 signatories to a letter sent by trade group UKHospitality to the Chancellor demanding a statement of intent in the budget.
The sector has united behind the need for action to prevent business rates bills in England quadrupling in April, if current relief ends as planned on 31 March. It warns that inaction would cost the sector £914m in additional rates bills.
Business rates are devolved to the Scottish Government, but there is a similar concern north of the border that rates bills are becoming unsustainable for some firms and UKHospitality is demanding that a replacement “multiplier” for the sector is applied across the UK.
In the letter to Chancellor Rachel Reeves, the chief executives say: “This Budget is the last chance to prevent bills quadrupling for high streets across the country. We are asking you to grasp this opportunity to deliver your manifesto commitment to fix business rates, and protect businesses.
“We propose that your Government introduces a new lower, permanent and universal multiplier for the hospitality sector, to be adopted across all nations of the UK.
“All hospitality businesses should benefit from that multiplier, removing the cap that has acted as a disincentive to growth as employers decide that opening a second premises is simply not worth the cost.”
Kate Nicholls, chief executive of UKHospitality, said: “This 170-strong cohort of business leaders across hospitality shows just how important addressing business rates is at the Budget.
“Inaction will lead to bills quadrupling and more venues shutting their doors for good, which will rob our towns and cities of vital community hubs.
“Further closures will be so detrimental to the Government’s growth agenda and put a dent in our sector’s ability to create places where people want to live, work and invest.
“If we don’t want to lose out on vital investment, job creation and regeneration of our high streets, then the Chancellor needs to act to introduce a lower level of business rates for hospitality at the Budget.”
