As the British government prepares to announce a climbdown on the impending hike in business rates faced by pubs in England, other sectors are urging Chancellor Rachel Reeves to extend the relief beyond just the hospitality industry.
The looming increases in business rates have been a major source of concern for businesses across the country, with landlords and pub owners leading the charge in criticising the planned hikes. Over 1,000 pubs have even banned Labour MPs from their premises in protest. However, other lobby groups and backbench MPs are now calling for the government to widen the scope of the relief, arguing that many other types of businesses will struggle to pay the higher costs.
Anna Turley, chair of the Labour Party, has acknowledged the government’s willingness to engage with the business community on this issue. “Where businesses are telling us they are struggling and they need more support, it is absolutely right that the chancellor talks to them, engages with the sector and looks at what we can do to assist them,” she said.
The British Independent Retailers Association (Bira) has questioned why its members, which include high street shops, restaurants and cafes, would not be given the same relief as pubs. Its chief executive, Andrew Goodacre, said independent retailers “face exactly the same challenges as pubs but have been left out of discussions about additional support.”
Surinder Arora, who operates a number of hotels in the UK, echoed this sentiment, stating that a potential carve-out only for pubs would be “not right or fair.” He warned that the higher costs will be passed on to his customers, and “belt-tightening” is inevitable.
The British Retail Consortium (BRC) has also criticised the current business rates system, with its chief executive, Helen Dickinson, describing the latest announcement as “another sticking plaster on a broken system rather than the more fundamental reform required.”
Jon Collins, chief executive of the music venue body LIVE, has called for the government to ensure that live events and arenas are not left behind if a U-turn on business rates for pubs is announced.
The National Pharmacy Association and the lobby group for gyms, pools and leisure centres have also expressed concerns about the potential for significant rate increases in their respective sectors, warning of higher prices, reduced services, and job losses.
As the government navigates this complex issue, businesses across various industries are urging for a more comprehensive and equitable approach to business rate relief, ensuring that the burden is not disproportionately borne by certain sectors.
