UKHospitality Advocates for Lower Business Rates in Government Proposal

UKHospitality, a representative body for the hospitality sector, has supported the government’s plans to lower business rates permanently. The organization provided evidence to the Public Bill Committee on the Non-Domestic Rating (Multipliers and Private Schools) Bill, asserting that the proposed changes could help level the playing field for high street businesses.

According to the proposals, properties with a rateable value under £500,000 might benefit from a 20p reduction in the pound compared to the small business multiplier. UKHospitality has urged the government to implement such a maximum discount.

However, Kate Nicholls, Chief Executive of UKHospitality, raised concerns that some hospitality businesses with a rateable value over £500,000 could be subjected to higher business rates, contradicting the policy’s intent. These businesses are often significant employers, especially in coastal communities. To rectify this, UKHospitality has proposed two solutions: exclude businesses with a rateable value over £500,000 from the higher multiplier surcharge, or assert that hospitality businesses will have a zero increase on current levels.

The organization claims that these solutions would uphold the reform’s intent to correct the long-standing overtaxation of the hospitality sector. According to UKHospitality, the sector has historically paid 10% of business rates while contributing only 3% of eligible turnover, which translates to an overpayment of £2.4 billion annually.

Nicholls expressed optimism that the government would address the oversight of hospitality businesses subjected to higher rates and intend to reduce business rates for all hospitality businesses.