Takeaway delivery service Deliveroo is calling on government to give restaurants a break and simplify onerous business rates to help high street restaurants struggling with rising costs.
The call follows research from Deliveroo and business rates specialists Gerald Eve which revealed that over 40,000 restaurants across England will hand over £1.5 billion in business rates in just two years.
Around 41,000 restaurants in England paid £744 million in business rates this year, with £763 million expected to be paid out next year. As many as 19,000 of those restaurants have seen their business rates bills rise by above inflation this year, according to the new research.
The details uncovered by Deliveroo and Gerald Eve also revealed that of those facing inflation-busting rises, some 12,000 are small restaurants with bills rising by up to 10.7%. Some larger restaurants have seen bills rise by as much as 36%, having already seen their rates jump by an astounding 44.8% last year. Next year rates for smaller restaurants could rise by as much as 12.5%, with some larger restaurants seeing increases of over 50%.
In a survey of Deliveroo’s partners, restaurant have told Deliveroo that business rates is currently one of their top three concerns that is holding back the industry. A major issue for small restaurants in particular is the complex appeals process, where restaurant owners can struggle to gather the excessive information required to query their bill.
Deliveroo is therefore calling for a simpler appeals process to help restaurants correct valuations and avoid fines of up to £500.
Through its partnership perks programme, Deliveroo supports restaurant partners struggling with business rates via specialist business rates advisor Gerald Eve.
Dan Warne, Deliveroo UK and Ireland managing director, said: “Britain’s restaurants up and down the country are an integral part of people’s daily lives, whether customers are dining in or ordering out. They contribute to the lifeblood of our communities, create thousands of jobs and Deliveroo is proud that our growth means more business for them.”
Jerry Schurder, head of business rates at Gerald Eve, said: “The difficulties faced by many restaurants nationwide highlight not only the extent to which the business rates burden has for many become unbearably high, but also the manifold unfairness baked into the system