UKH warns of inflation-linked rates rise

With inflation standing at 6.7% in September, UK Hospitality has warned that the hospitality industry could face an additional £234m in business rates, if the government is to go ahead with its planned inflation-linked rise in April.

This combination would leave hospitality facing a huge £864m in business rate costs next April.

In order to avoid this unaffordable rise and keep businesses from closing as a result, UKHospitality is urging the chancellor to:

• Freeze the business rates multiplier, avoiding an inflation-linked rise and saving businesses £234m.
• Maintaining the business rates relief for hospitality businesses at 75%, saving the sector £630m.

Kate Nicholls, chief executive said: “Today’s figures finally confirm the bleak picture facing hospitality businesses next April. Almost a billion pounds in extra costs from business rates alone is unfathomable – and insurmountable – for many.Such dramatic cost increases would undoubtedly be the final nail in the coffin for many businesses.

“It would be particularly perilous for small, independent businesses, for which ongoing relief measures are a lifeline at a challenging time.Hospitality is at the heart of our communities and it’s essential we do all we can to protect them and the value they bring, from driving economic growth to creating jobs.

She added: “It’s imperative that the chancellor takes clear action at the Autumn Statement to extend the current relief measures for a further year to protect the vital community assets that make up the UK’s vibrant hospitality sector.”