UKHospitality calls for fixed low hospitality multiplier

One of the UK's leading trade bodies has called on the government to introduce a lower and universal hospitality rates multiplier as part of its Budget submission. 

With current business rates relief set to end on 31 March 2025, UKHospitality says the chancellor must act now to ensure hospitality businesses aren’t left facing the prospect of their business rates bills increasing by tens of thousands of pounds come next year. 

A pub with a rateable value of £80,000 could see its rates increase by almost £33,000 if relief were to end. 

The Labour party made business rates a top priority in its manifesto, so may well acknowledge the suggestion from UKHospitality.

The trade body argues that a permanent, lower and universal hospitality multiplier would begin to deliver the government’s manifesto commitment to rebalance the broken business rates system. 

UKHospitality's Budget submission requests

"It’s imperative that the government addresses the looming business rates cliff edge at the upcoming Budget, as the sector’s ability to both survive and thrive depends on it," says Kate Nicholls, CEO of UKHospitality. 

"A new, lower multiplier for all hospitality businesses would begin to rebalance a broken system that is weighted against bricks and mortar businesses, and a permanent solution would provide some certainty and stability for businesses that desperately need it. 

"While we recognise the financial challenges the new government faces, it would be frankly irresponsible not to support a sector that generates £140bn in revenue every year and employs more than 3.5m people. I would urge the chancellor to act in the interests of hospitality businesses, its employees and the communities they serve on 30 October."

In its Budget submission, UKHospitality is asking the chancellor to:

• Deliver its manifesto promise to rebalance the business rates system through a lower, permanent and universal hospitality business rates multiplier.
• Support enhanced back-to-work schemes and reform of the Apprenticeship Levy to help reduce economic inactivity and improve social mobility across hospitality. 
• Promote growth by unlocking the commercial planning system, including fast-track planning approvals. 
• Reduce employer National Insurance Contributions to support businesses increasing wages. 
• Support green investment in the sector by reforming investment credits so they can be offset against employment taxes, rather than corporation taxes.
• Reform VAT for the sector to bring it in line with European rivals, making British tourism competitive, stimulating demand, creating new jobs and allowing businesses to reinvest. 

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