UKH welcomes business rates reform but urges maximum discount

UKHospitality has said government proposals to reform business rates are a “positive” move but stressed the need for a maximum discount to be applied at the Budget.

It comes after an interim report on reform, published yesterday (10 September), outlined measures including changes to Small Business Rates Relief and adjustments to eliminate “cliff edges” where rates bills rise sharply between bands.

While the trade body said these steps would help rebalance the system, it reiterated calls for the government to use its new powers to apply the highest possible reduction to the multiplier for hospitality properties with a rateable value of up to £500k.

The legislation, secured earlier this year, allows ministers to apply a discount of up to 20p in the pound.

According to UKH, the current system “unfairly punished hospitality businesses” and described the reforms as an important first step. 

Kate Nicholls, chair of UKHospitality, said: “Applying the maximum possible discount to the multiplier for all hospitality properties under £500k rateable value at the Budget in November is critical. That is the most significant and meaningful benefit that can come from these reforms, particularly with anticipated increases in rateable values coming into effect next April.

“Hospitality businesses find themselves taxed out as a result of cost increase after cost increase. Lowering business rates, fixing National Insurance contributions and cutting VAT is the action we need to see the government take at the Budget.”