Pub chains urge Chancellor: Save us from business rates cliff edge

Bosses from 170 major pub and restaurant chains have urged the Chancellor to avoid a “business rates cliff” and drive growth in the Budget.

Greene King, JD Wetherspoon and Slug & Lettuce owner Stonegate are among those who have written to ask Rachel Reeves to stop the tax quadrupling in April.

Organized by the UKHospitality group, the letter has also been signed by Caffe Nero, Burger King and KFC, who fear that “investment in our high streets will be restricted, employment opportunities will be wasted and we will see higher levels of business failure”.

It said: ‘We have set out how we can avoid this cliff edge and drive growth. Now is the time to achieve the fundamental change that they have promised and that will bring so many results.”

Rates are set to rise by almost £1bn in April, when a Covid-era aid expires. With the relief, all hospitality and leisure companies have reduced their bill by 75 percent.

The industry has been pushing for this relief to be extended, as well as for the permanent reform promised by the Labor Party in its manifesto. “Our tax system discourages people from running street businesses (when) we should encourage them,” the letter added.

It is a major concern along with potential increases including employers’ National Insurance contributions (NICs). Shepherd Neame chief executive Jonathan Neame said his sector was already “the most taxed and overregulated in the world”. He added: ‘We need less taxes and less regulation. “Any additional tax will be inflationary and very unpleasant.”

Nick Mackenzie, chief executive of Greene King, said: “Increasing the cost of doing business risks limiting pubs’ ability to invest, create jobs and drive growth.”

Milsom Hotels & Restaurants is a small business that fears a £110,000 rise next spring.

Paul Milsom, whose family has run four venues in Essex for 70 years, said the “pernicious” rates had “got out of control”. “Our industry is screaming and it will be a big shock if the Government doesn’t do something,” he added.