Pub chains urge Chancellor: Save us from the brink of business rates
- Hospitality industry is urging Rachel Reeves to halt a quadrupling of business rates
- Concerns that investment in the High Street will be curtailed
- Concerns about employment opportunities and more bankruptcies
Bosses of 170 major pub and restaurant chains have urged the Chancellor to avoid a ‘cliff edge on business rates’ and push for growth in the Budget.
Greene King, JD Wetherspoon and Slug & Lettuce owner Stonegate are among those who have written to Rachel Reeves to halt the quadrupling of taxes in April.
The letter, organized by the UKHospitality group, is also signed by Caffe Nero, Burger King and KFC, which are concerned that ‘investment in our high streets will be curtailed, employment opportunities will be squandered and we will see more bankruptcies.’
It said: ‘We have set out how to avoid this cliff and drive growth. Now is the time to make the fundamental change you promised that will deliver so much.”
Rates are set to rise by almost £1 billion in April, when Covid-era aid expires. With the relief, all catering and recreation companies have shaved 75 percent off their bill.
Concerns: Greene King, JD Wetherspoon and Slug & Lettuce owner Stonegate are among those who have written to Rachel Reeves to halt a quadrupling of taxes
The industry has lobbied for an extension of this aid, as well as permanent reforms that Labor promised in its manifesto. “Our tax system discourages people from running large businesses (when) we should encourage them,” the letter adds.
It is a major issue alongside possible increases, including in employer contributions to National Insurance (NICs). Jonathan Neame, chief executive of Shepherd Neame, said his sector is already “the most over-stressed and over-regulated in the world”. He added: “We need less taxes and less regulation. Any further taxes will be inflationary and highly unwelcome.”
Nick Mackenzie, chief executive of Greene King, said: ‘Increasing the cost of doing business risks limiting pubs’ ability to invest, create jobs and drive growth.’
Milsom Hotels & Restaurants is a small business that fears a £110,000 rise next spring.
Paul Milsom, whose family has run four sites in Essex for 70 years, said the “pernicious” rates had “spiraled out of control”. “Our industry is crying out and it will be a big shock if the government does nothing,” he added.
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