Hospitality Industry Hit Hard by New Business Rates

Hospitality Industry in Crisis: New Business Rates Spark Concerns of Job Cuts and Price HikesHotel, pub, and restaurant leaders are expressing serious concerns about new business rates, which are a type of property tax. Many are preparing to cut back on investments and even jobs, saying these changes feel like a stealth tax raid on the hospitality industry. Some of Britains biggest chains are facing millions of pounds in additional costs, forcing them to rethink their spending plans and potentially raise prices for customers.Earlier this week, Rachel Reeves had promised lower taxes for pubs, restaurants, and small shops, aiming to shift the burden to higher-value properties like large warehouses used by online retailers. However, many hospitality businesses are now seeing their bills soar. This is partly because a forty percent discount, which was put in place during the pandemic, has been removed, and the way business rates are calculated has also changed.Surinder Arora, who founded the Arora Group hotel operator, stated that these plans will sadly mean laying off more people, as his companys business rates bill is spiking by eighty percent. Tim Martin, the boss of JD Wetherspoon, echoed this sentiment, predicting that prices will definitely rise across the industry, profits will be squeezed, and investment will be cut back.According to officials, the reforms were meant to create a more level playing field between high street businesses and online giants. However, industry leaders like Kate Nicholls from UKHospitality argue that the opposite is happening. She points out that large distribution warehouses and out-of-town supermarkets are seeing much smaller increases in their rates compared to pubs, hotels, and other hospitality businesses.This situation is causing widespread dismay across the hospitality sector, which was already hit hard by previous budget decisions. Many smaller businesses, in particular, are facing potentially devastating price increases, with some seeing their business rates bills more than double.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.