Reeves Doesn’t Rule Out Wider Business Rates Support Across Hospitality
Rachel Reeves has indicated that the government may extend business rates support to the broader hospitality sector, beyond the promised aid for pub owners.
– Recent reports from the BBC suggest that the Treasury is preparing to announce additional assistance specifically for pubs, which, like all hospitality businesses, are facing the termination of Covid-era business rates relief in April.
– This termination coincides with significant increases in the rateable values of their properties.
Government Support for Hospitality Sector
– Earlier in the day, Reeves appeared to be reluctant to extend support to other hospitality segments. However, during a later press conference, she emphasized her commitment to collaborating with the hospitality sector.
– Treasury officials informed the BBC that a financial package aimed at aiding pubs would be revealed in the coming days, but additional relief for the wider sector remains a possibility.
– Opposition MPs and industry associations have been urging the government to expand this support to include other hospitality businesses, such as hotels and restaurants.
– In her interview with the BBC, Reeves remarked, As that transitional relief comes to an end, although we’ve allocated £4.3 billion over the next three years, we need to ensure that we provide balanced support, especially for our pubs and the hospitality sector.
Understanding the Financial Landscape
The £4.3 billion allocation refers to caps on rate rises over the next three years, intended to ease the financial burden as follows:
– Pubs: Projected rate increases of 76% in three years.
– Hotels: Expected rate hikes of 115% over the same timeframe.
Kate Nicholls, representing Hospitality UK, expressed optimism about the government’s openness to support non-pub businesses facing similar challenges. It’s encouraging to see recognition of the broader hospitality sector and discussions about support beyond pubs, she stated.
In a conversation on BBC Breakfast, Reeves expressed her particular concern regarding the financial impact of business rates on pubs. However, she reiterated her hesitation about extending support to smaller businesses in the hospitality industry.
– When queried about aid for smaller establishments, she noted, I think people understand that the primary concern right now is around pubs. Some of the smallest businesses, particularly cafes, don’t incur any business rates as they fall below the size thresholds.
As Covid-era relief ends in April, many businesses are voicing worries about their ability to manage escalating rates.
– A publican commented on the situation, stating, Business rates changes will cost me £62,000, highlighting the impact of the impending financial shifts on hospitality operators.
With ongoing discussions around business rates in the hospitality sector, it remains to be seen whether broader support will materialize in the wake of these significant adjustments.