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News & Press: General

UKHospitality calls on Government to push ahead with tax on digital businesses

10 August 2018   (0 Comments)
Posted by: Pernille Thomsen
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UKHospitality has welcomed the Chancellor’s reference to the introduction of a tax for digital businesses and called on the Exchequer to ensure that online businesses pay their fair share.


UKHospitality Chief Executive Kate Nicholls said: The taxation system must evolve to keep pace with the impacts of the rapid rise in digital business so the Chancellor’s proposals are certainly welcome.


“High street businesses, particularly hospitality businesses, are facing an enormous tax inequality and the Government desperately needs to take proactive steps to address this to help support vital businesses in the heart of communities.

“Hospitality businesses are at a particular disadvantage, paying 10% of all business rates despite only generating 3% of turnover. As it stands, the hospitality sector is overpaying business rates by £1.8 billion per year.

“Revenues from taxing digital companies can be used to slash the burden on high street properties hardest hit by business rates, while the Government reviews the tax system and implements one that is fit for the 21st Century.

“UKHospitality has been pushing the Exchequer for tax reform and we will continue our dialogue to make the point that digital businesses need to pay their fair share.”

Notes to editors

  • UKHospitality is the new trade body representing the UK’s hospitality sector, established following a merger approved in February 2018 between the Association of Licensed Multiple Retailers (ALMR) and the British Hospitality Association (BHA)
  • UKHospitality is the authoritative voice for over 700 companies, operating around 65,000 venues in a sector that employs 3.2 million people
  • The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators
  • For the first time, the sector has a single voice bringing together businesses from all aspects of hospitality; coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment, stadia and visitor attractions
  • Engaging with government, the media and the public, UKHospitality works to develop a robust case on how to unlock the industry’s full potential as the biggest engine for growth in the economy and ensure that the industry’s needs are effectively represented
  • The sector creates £130bn in economic activity and generates £38bn of tax for the Exchequer, funding vital services
  • Hospitality represents 10% of UK employment, 6% of businesses and 5% of GDP
  • Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined
  • Member benefits include free advice and expert guidance on regulation, finance and health and safety as well as savings on services from carefully selected business partners.

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