The legislation enables overhaul of the broken business rates system, following years of UKHospitality campaigning.
The Government’s commitment to reform the business rates system and provide a permanently lower level of business rates for the sector has become law, as the Non-Domestic Rating (Multipliers and Private Schools) Act received Royal Assent.
Maximum discount
UKHospitality is asking for the maximum discount to be applied to hospitality properties with a rateable value of less than £500,000. It is also calling for hospitality properties with a rateable value over £500,000 to be exempt from the surcharge, in line with the Government’s intention to level the playing field for the sector.
Kate Nicholls, Chief Executive of UKHospitality, said: “After UKHospitality campaigned for substantial business rates reform for years, legislation making this a reality is a landmark moment.
“We’re delighted that the Government is taking action to level the playing field for the hospitality sector.
“With the finer details set to be unveiled in the Autumn, we are urging the Government to offer the maximum discount for hospitality businesses, after decades of paying significantly more than their fair share. It should also exempt hospitality businesses from the surcharge.
“A permanently lower level of business rates will truly benefit hospitality businesses and, crucially, rebalance a system that has unfairly overtaxed the high street by billions of pounds.
“Whilst we remain optimistic about business rates reform and its ability to give operators some of the financial headroom they desperately need, this unfortunately won’t scratch the surface of the £3.4bn annual cost increases hitting the hospitality sector.
“We are urging the Government to work with us to bring forward a plan for hospitality businesses that will enable the sector to unlock growth and jobs.”
