Hundreds of UK hospitality groups and pubs have called for permanent action on business rates relief ahead of the Autumn Budget.
In an open letter to Rachel Reeves, the hospitality bosses called for permanent action with the extension and lowering of business rates relief for the sector.
It included 170 signatures from various high street groups such as Pizza Pilgrims, Fuller’s, Greene King, and JD Wetherspoons.
The letter said that if action is not taken, high street investments “will be curtailed, employment opportunities will be squandered, and ultimately, we will see higher levels of business failures.”
“This Budget is the last chance to prevent bills quadrupling for high streets across the country. We are asking you to grasp this opportunity to deliver your manifesto commitment to fix business rates, and protect businesses,” the letter said.
“We propose that your Government introduces a new lower, permanent and universal multiplier for the hospitality sector, to be adopted across all nations of the UK.”
The current business rate relief is 75 per cent. However, it is meant to expire on 31 March.
Kate Nicholls, chief executive of UKHospitality, said inaction would be a blow to the government’s current growth agenda.
“If we don’t want to lose out on vital investment, job creation and regeneration of our high streets, then the Chancellor needs to act to introduce a lower level of business rates for hospitality at the Budget,” Nichols added.
A bi-monthly survey of over 500 mid-sized businesses by advisory firm BDO also highlighted a desire for action on business rates.
Some 18 per cent said they hope to see the government “commit to replacing” business rates, with the potential introduction of business income tax. This number jumped to 27 per cent in the retail sector.
“Accounting for one in three private sector jobs and providing revenues of £1.6tn, the contributions of these businesses to the UK economy and their potential to scale-up should not be overlooked by policymakers,” Richard Austin, partner at BDO said.