500 high street outlets at risk of closure, warns UKHospitality
The proposed business rates surcharge for large properties puts hospitality and retail businesses, employing 120,000 people, at risk of closure
UKHospitality (UKH) and the British Retail Consortium (BRC) have united to call on the government to exempt hospitality and retail outlets from a planned business rates surcharge, which would see 5,000 high street properties over £500,000 rateable value affected by a higher tax rate.
The trade bodies believe 500 premises would be put at risk of closure if the surcharge were applied. These properties employ approximately 120,000 people.
The government's manifesto committed to reforming business rates and levelling the playing field for the high street. This cannot be achieved if hospitality and retail businesses remain eligible for the surcharge and end up with higher rates bills, after decades of overpaying.
'Reform of the system is long overdue'
Kate Nicholls, chair of UKHospitality, comments: "The broken business rates system has punished bricks and mortar hospitality businesses for decades, with our sector paying three times more than its fair share.
"Reform of the system is long overdue and we now need to see the government deliver in full its pledge to level the playing field for the high street.
"That means implementing the maximum possible rates discount for properties below £500,000 rateable value, and exempting larger hospitality properties from the surcharge.
"Delivering both these measures is the only way to fulfil that commitment and prevent hospitality businesses from being taxed out.
"The sector was hit by £3.4bn annual cost increases in April, and the threat of this surcharge will only increase this already extortionate figure. Hospitality has the ability to create jobs, support local communities to help them thrive and regenerate our high streets – we need the government to back us in order to develop locations where people want to live, work and invest."
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