The government’s upcoming new support to tackle business rates increases in England will only apply to pubs, chancellor Rachel Reeves has indicated.
Reeves confirmed earlier this month that the government will introduce additional help for businesses facing increases in business rates following the reforms unveiled in last November’s Budget. A Covid-era discount for retail, leisure and hospitality firms will be removed, and rates will rise for many as a result of a revaluation of properties.
It was implied that the support was just for pubs, despite calls for the support to cover the whole hospitality sector, including restaurants, hotels and cafes.
Speaking to reports at the World Economic Forum in Davos, Reeves appeared to confirm only pubs will benefits. “The situation the pubs face is different from other parts of the hospitality sector but we will be setting out the detail in the next few days”, she said.
A Treasury official told the Financial Times that “this package is for pubs”, but said the government is continuing to listen to the concerns of the wider sector.
Responding to the comments, Kate Nicholls, chair of UKHospitality, said: “The situation the pubs face is no different from the hotels because of the very large increases in their rateable values.”
Simon Vincent, president, Europe, Middle East & Africa, at Hilton: added: “The punitive business rates imposed on hospitality businesses up and down the country will impact jobs, the economy and growth.
“Layer upon layer of extra taxes are disincentivising employment and impacting our hotel owners, many of whom are small and medium sized businesses.
“These hotels play a vital role in their communities, creating employment and supporting local suppliers.
“The government should act now to ensure hotels are included in a sector-wide solution.”