"In the budget in November, Rachel Reeves, the chancellor, committed 4.3bn over three years in financial support for the retail and hospitality industries but also announced the end of business rate discounts in place since Covid. This would exacerbate the impact of a revaluation of property valuations, the basis for business rates, which has caused a rise in the taxable value of pubs and restaurants from their Covid-affected lows."
"Starting from April, rates will rise by 115% for the average hotel and 76% for a pub, compared with 4% for large supermarkets and 7% for distribution warehouses. Whitbread, which owns pubs, restaurants and the Premier Inn hotel chain, says it will have to pay between 40m and 50m in tax as a result. The change of plan follows discussions with pub and hospitality trade bodies about the impact of the revaluation."
Ministers are preparing to reverse planned business rates changes affecting pubs after strong hospitality industry opposition and concern from Labour MPs. Revised measures will be announced in the next few days to address problems with how business rates are collated. The measures will form part of a wider Treasury package including support on licensing, opening hours and reductions in red tape. The chancellor committed 4.3bn over three years for retail and hospitality but ended Covid-era rate discounts, while a revaluation has increased taxable values. Significant rate rises from April prompted industry protests and commissioned Treasury work.
Read at www.theguardian.com
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