Hospitality and Retail Sectors Criticise Exclusion from Business Rates Relief
Businesses across the hospitality and retail sectors have voiced strong criticism following the government's announcement of targeted business rates relief, which excludes many key players. The Treasury revealed on Tuesday that pubs and live music venues in England will receive a 15% discount on their new business rates bills from April 1st, alongside a two-year freeze in real terms. This move, averaging £1,650 per eligible business, has sparked a backlash from other industries facing similar financial pressures.
Widespread Discontent Among Overlooked Sectors
Leading trade bodies have condemned the decision as narrowly focused, arguing that it fails to address the broader challenges within the hospitality and night-time economies. Michael Kill, chief executive of the Night Time Industries Association, described the support as "little more than a drop in the ocean" when considering the cumulative impact of recent budgets. He highlighted that sectors like nightclubs, restaurants, and bars have been "savaged by rising business rates, VAT, alcohol duty, employment costs and licensing fees."
UKHospitality, representing thousands of establishments including restaurants, pubs, hotels, and cafes, emphasised that the rising cost of doing business is a hospitality-wide problem requiring a comprehensive solution. Chair Kate Nicholls warned that without substantive measures to reduce costs, many businesses will face tough decisions regarding viability, jobs, and consumer prices.
Specific Sector Concerns and Financial Impacts
The exclusion has raised alarms in various sectors:
- Pharmacies: Henry Gregg of the National Pharmacy Association stated that rate increases could push some independent pharmacies "to the brink of collapse," criticising the government for ignoring their vital health role on high streets.
- Gyms and Leisure Centres: Huw Edwards from ukactive noted that some members face rate hikes of up to 60%, forcing price increases for consumers and stifling employment opportunities. Nicolas Denby of Sleven Fitness reported an average expected uplift of 145% for independent gyms, calling the situation "ridiculous."
- Convenience Stores: James Lowman of the Association of Convenience Stores expressed that local shops feel "neglected and dismissed," with potential impacts on investment and services.
While large retail chains like Waterstones may not see overall bill increases, the broader sentiment is one of frustration. The government's approach has been labelled "simply outrageous" by some, with accusations that it suffocates employment opportunities and overlooks essential community facilities.
Calls for Broader Support and Review
Amid the criticism, there are calls for a more inclusive strategy. The announcement included a review of rate calculation methodologies for hotels and pubs, but stakeholders argue this does not go far enough. They stress that sectors like gyms, pharmacies, and restaurants contribute significantly to high street renewal and public health, yet are left to absorb rising operational costs without relief.
The backlash underscores the growing tension between government policy and business sustainability, with many fearing that without wider support, the viability of numerous enterprises across England will be at risk.
