The hospitality sector is “craving some consistency” from the government following recent changes to the business rates regime, according to a leading lawyer.
Following a backlash against November’s Budget, the Treasury has announced that pubs and music venues in England will be given a 15 per cent discount on their business rates bills from April and will not see increases for two years.
It says the three-year package will be worth £1,650 for the average pub in 2026-27.
The government also promised to review how pubs are valued by the Valuation Office Agency ahead of the next revaluation of premises in 2029.
The hospitality sector has warned that revaluation will still leave most businesses facing an increase in business rates bills in April, despite the government having lowered its “multipliers”.
In addition small retail, hospitality and leisure businesses in receipt of discounts that have been in force since the pandemic, which dropped from 75 per cent to 40 per cent in November, will no longer receive this rebate from April.
The government says the latest additional support package means that three in four pubs will see their business rates bill fall or stay the same next year.
Richard Saxton, a partner in the commercial property team at national law firm Clarke Willmott in Birmingham and a specialist in the leisure, hospitality and retail sectors, says that while some respite for struggling pubs is welcome, the latest government package represents a missed opportunity.
“This change will benefit some parts of the hospitality sector and not others,” he says.
“While this latest business rates bill discount is obviously welcome, the way the Government has locked on to pubs being singled out as community hubs is confusing. It is only focusing on one part of the sector and effectively saying that hotels and restaurants don’t matter.
“The overheads and pressure on margins being faced by operators in the hospitality sector are higher than ever and an opportunity to make a more impactful reduction in business rates across the board has been missed.
“Above all operators are craving some consistency from the government.”
In a further attempt to support the hospitality sector, the government is planning to allow pubs and other licensed venues to stay open after midnight when Home Nations teams are playing in this summer’s World Cup.
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