Business rates reforms positive, but maximum discount still needed at Budget
UKHospitality has reiterated its call for the Government to apply the maximum possible discount for hospitality’s business rates at the Budget.
What's in today's report?
The Government has today 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 has said these proposals are ‘positive’ and will help to rebalance the system, but 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.
Our response
Kate Nicholls. Chief Executive of UKHospitality
Kate Nicholls, Chair of UKHospitality, said: “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.
“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.
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 NICs and cutting VAT is the action we need to see the Government take at the Budget.”
