Hospitality leaders angry over Reeves’ rates snub – Daily Business

Hospitality leaders and other small businesses have expressed frustration that Rachel Reeves will unveil a package of business rates support that is limited to pubs.

The Chancellor will reveal her new package “in the next few days”, but told journalists at the World Economic Forum in Davos that she will not extend relief to struggling hotels, restaurants and cafés.

Measures thought to be worth about £300 million will ease pressure on pubs which say they will close unless they receive support. Publicans mounted a campaign banning Labour MPs from their premises in protest at the level of business rates.

“I do recognise the particular challenge that pubs face at the moment, and so I’ve been working with the sector over the last few weeks to make sure that the right support is in place and we’ll be announcing something in the next few days,” Reeves said.

“I think the situation pubs face is different from other parts of the hospitality sector. We’ve just been using this time to get the package right. We’ll be setting out details in the next few days.”

The support will relate directly to pubs in England and Wales. Scottish Finance Secretary Shona Robison said she would await Ms Reeves’ announcement to determine how it will be rolled out to Scotland.

The average small business faces a 52% rise in business rates this year, according to the Federation of Small Businesses.

Some pubs expect increases of more than 100% as Covid-era support measures are phased out and properties are revalued for the first time since before the pandemic.

However, research from Colliers found that hotels could see rateable values spike as much as 250% and will be hit with an average increase in rateable value of 77% under current plans.

An open letter which was sent to the Chancellor signed by 130 of the UK’s biggest hotel and holiday park operators, including Whitbread, Hilton, Butlins and Haven, which called for hotels to be included an any rates relief package.

Allen Simpson, the chief executive of UKHospitality, said: “The entire hospitality sector faces the same cost challenges.

“These are not challenges unique to pubs. Our hotels, restaurants and cafés, to name a few, all face their business rates bills increasing by thousands, driven by the same large increases to rateable values affecting pubs.

“The government has one chance to get this right. Without a package of support for the entire sector, I fear it will be too little, too late.”