On-trade plans large cuts without rates support

A new survey from a selection of hospitality trade bodies has revealed that over 50% of businesses within the sector are planning to cut staff and reduce investment if they don't receive business rates support.

The new figures demonstrate the importance of the chancellor extending the hospitality sector relief and freezing the business rates multiplier at the Autumn Statement.

The survey, conducted by the British Beer and Pub Association (BBPA), British Institute of Innkeeping (BII), Hospitality Ulster and UKHospitality, reveals government action on business rates is viewed as a top priority by 60% of respondents, up 16% from August. 

It also reveals that business optimism is down to just 29%, a drop of 10% from the summer. The trade bodies claim that 38% of hospitality venues are currently failing to make a profit.

"These figures lay bare the enormous impact inaction at the Autumn Statement would have on the hospitality sector," says a joint spokesperson for the trade bodies. "Pubs, restaurants, hotels, coffee shops, to name a few, will fall victim to a significant business rates bill, if relief expires and rates are hiked with inflation. 

"Reducing investment and cutting staffing levels are the last thing venues want to do. In fact, they want to do the opposite, but their hands will be tied if rates increase to such an extent in April. Businesses are only able to absorb endless cost rises for so long and yet more pressure in the form of business rates will only force them to consider whether this is passed onto consumers. 

"The government must listen to the concerns of hospitality businesses, as the nation’s third largest employer, and extend the hospitality sector relief and freeze the business rates multiplier at the Autumn Statement, and as well as taking steps to reduce the overall tax burden on the sector in relation to business rates, VAT and excise duty."

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