Retail, leisure and hospitality businesses across England face a £2.66 billion ‘cliff edge’ when a pandemic-era tax break expires in April next year, experts have warned.
Shops, pubs, hotels, restaurants, cinemas and gyms will be hit when the 75 per cent discount on business rates ends.
Data analysis by property consultancy Altus Group showed that 252,414 eligible properties will receive the relief up to a maximum of £110,000 per business.
The annual cost of the scheme totals £2.41 billion – an amount that will now be borne by these companies.
At the same time, overall business rates will rise in line with inflation, adding £250 million to the sector’s rates bills, according to Altus. That will deliver a ‘double whammy’ to businesses totaling £2.66 billion, the report calculated.
Hard hit: Retail, leisure and hospitality businesses across England face a £2.66 billion ‘cliff edge’
Alex Probyn of Altus Group said: ‘The Chancellor must avoid a cliff edge for the retail, hospitality and leisure sectors in her upcoming Budget.’
Probyn said Reeves must “reduce the burden already on our high streets”.
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