UKH warns hundreds of venues could shut under new rates surcharge
The proposed surcharge, expected to apply to about 5,000 large premises across the UK, would come on top of what the trade body described as ‘decades of overpayment’
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Hundreds of large hospitality venues could face closure if the government goes ahead with plans to impose a new business rates surcharge on big properties, UKHospitality and the British Retail Consortium (BRC) have warned.
According to UKH, the measure would threaten around 500 high street venues with rateable values above £500k, potentially affecting 120,000 jobs. The proposed surcharge, expected to apply to about 5,000 large premises across the UK, would come on top of what the trade body described as “decades of overpayment” under the current system.
Kate Nicholls, chair of UKHospitality, said: “The broken business rates system has punished bricks and mortar hospitality businesses for decades, with our sector paying three times more than its fair share.
“Reform of the system is long overdue and we now need to see the government deliver in full its pledge to level the playing field for the high street. That means implementing the maximum possible rates discount for properties below £500k rateable value, and exempting larger hospitality properties from the surcharge.”
Nicholls added that the sector had already faced £3.4bn in additional annual costs since April, warning that a surcharge “will only increase this already extortionate figure”.
In light of this, the BRC joined UKH in urging the chancellor to reconsider the plan. Chief executive Helen Dickinson said thriving town and city centres depend on “a vibrant mix of outlets – from shops and cafés, to restaurants and entertainment venues”.
Dickinson added: “Over the past year, retailers have faced an additional £7bn in costs – from higher employer National Insurance contributions to new packaging taxes. Introducing a business rates surtax would only add to inflationary pressures, leading to store closures and job losses.”
Industry leaders said exempting hospitality venues from the surcharge would support investment, protect jobs and help local high streets recover amid continuing cost pressures.
