Reacting to the government's announcement on a cut in business
rates for pubs, clubs and music venues, Kate Shoesmith, Director
of Policy and Insight at the BCC, said:
While news of a carve out for pubs,
clubs and music venues is welcome, there are many other smaller
hospitality companies facing an existential threat.Meanwhile at
the other end of the scale, airports and hotel chains are already
paying millions more.
The last few yearsofBrexit,
Covid,risingenergybills, warsandothergeopolitical crises
havepushedcosts to record highsand theseshow no signs
ofwaning.
Our latest research shows more than a
third of firms believe business rates are of more concern now
than they were three months ago.
And this anxiety is felt more sharply
in some sectors, with more than half of hospitality business, and
two fifths of manufacturers and transport firms fearing the
worst.
Any action on rates is long overdue
and very welcome, but root and branch reform of the system was a
Labour manifesto commitment, and it is time to deliver on that
promise.
A step-by-step action plan is
required. First, the governmentmust mitigate the steep jumps in
bills across all sectors caused by the 2026 revaluation. That
meansintroducing a single flat ratemultiplier and making bills
easier to understand.
This shiftshould then jumpstart a
morerigorous consultation with businesson howtofullyreform what
is acomplexandrigidsystem.
The time for tinkering round the edges
has long gone. What firms of all shapes and sizes need to see is
a new plan for fair and proportionate business rates set out at
the Autumn Budget. We stand ready and willing to help inform
those plans.
