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A number of hospitality trade organisations have united to call for reform to the business rates model.
UKHospitality (UKH), the British Beer and Pub Association (BBPA), British Institute of Innkeeping (BII) and Hospitality Ulster (HU) have produced a survey detailing the biggest issues for the sector.
According to the survey, 80% of respondents stated that reforming business rates in the Autumn budget would have a positive impact on their business.
Businesses also said that both a VAT reduction for hospitality (85%) and a reduction in alcohol duty (34%) would be an important measure to allow their business to grow.
Year-on-year, 95% of hospitality businesses have experienced increased wage costs alongside rising food (89%), insurance (84%) and energy (57%) costs.
In a joint statement, the trade bodies said: “It’s crystal clear that there is an overwhelming desire from the hospitality sector that the Government rapidly delivers on its manifesto commitment to replace business rates and reduce the burden on high street businesses, as well as continue current support. Hospitality continues to remain an outlier sector, with costs continuing to rise sharply compared to the rest of the economy.
“With cost increases affecting almost every venue, this vital sector is being prevented from investing in businesses and communities, which would boost economic growth and new jobs. Instead, they’re having to use dwindling cash reserves just to pay the bills.
They added: “The clock is ticking, with a cliff-edge looming on 1 April when relief ends and rates are set to increase again. Inaction would see bills spiral yet further, putting venues under increased threat of closure. Alongside our members, we hope to see clear and decisive action toward delivering on the Government’s manifesto commitment from the chancellor at the Budget in October.”
