Ahead of the upcoming Budget, 50 leading hospitality business have rallied behind UKHospitality, the single, authoritative voice for the hospitality sector, to submit a letter to the new Chancellor Rishi Sunak – calling for urgent support on business rates.
Pub, bar, restaurant and hotel groups including Greene King, Wagamama, Accor, Merlin Entertainment, Pizza Hut and J D Wetherspoon, are calling for immediate action to prevent further damage to a sector which pays more than £3 billion each year in business rates – four times more than it should be under an equitable system.
Kate Nicholls, UKHospitality Chief Executive, comments: : “Hospitality is a sector that touches people in communities all across the UK but is being harmed by an outdated business rates system that is simply not fit for purpose. Rising business rates bills mean hospitality businesses don’t have the cash to invest in jobs and revitalising high streets and rural communities. We urge the Chancellor to act at the upcoming Budget to help support the sector.
“The Government must push ahead and fulfil its promise on reform without further delay. We are determined to ensure that a future rates system benefits the hospitality sector, which has been disproportionately hit over the years.”
- Hospitality businesses overpay on rates by £2.4 billion relative to their economic activity – paying four times more than they should
- Hospitality pays 11% of business rates yet makes up 2.5% of business activity
- The sector creates £130bn in economic activity and generates £39bn of tax for the Exchequer, funding vital services
- Hospitality represents 10% of UK employment, 6% of businesses and 5% of GDP
- Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined