Hotel industry chiefs urge chancellor to extend business rates relief beyond pubs

"More than 130 senior hotel and holiday park executives have written to the chancellor, Rachel Reeves, warning that Labour's planned changes to business rates represent the most serious threat to the sector's viability and must not be limited to pubs alone. In a letter coordinated by UKHospitality, industry leaders said the government's proposed relief package for pubs risks leaving large parts of hospitality "hung out to dry", despite facing similarly sharp increases in costs."

"The intervention comes amid mounting criticism of Labour's reforms to business rates, which executives say will drive closures, job losses and higher prices for consumers if left unaddressed. According to analysis by UKHospitality, average hotel business rates bills are set to rise by 115 per cent over the next three years, adding around £205,200 per property. The sector is expected to be among the hardest hit by the changes due to rising rateable values and the withdrawal of pandemic-era reliefs."

More than 130 senior hotel and holiday park executives wrote to the chancellor warning that Labour's planned changes to business rates represent a serious threat to sector viability and must not be limited to pubs. The government's proposed pub relief risks leaving large parts of hospitality without support despite facing similar cost increases. Signatories include senior figures from major hotel and resort chains. Analysis by UKHospitality estimates average hotel business rates bills will rise 115 percent over three years, adding about £205,200 per property. Executives said a whole-sector relief solution is critical because hotels and holiday parks cannot easily absorb the extra costs and will likely pass them to consumers, risking closures, job losses and higher prices.

Read at Business Matters