""Hotels are bearing the brunt of a number of tax and running cost increases," Shah said. "Some are facing their rateable values increasing by more than 300 per cent this year, while also having to absorb higher national insurance contributions and a rising national minimum wage.""
""Hotels may be forced to pass on these additional costs, but guests may simply not be prepared to pay more," he said. "That could harm hotel finances further and put jobs at risk.""
Calls have been made to extend the business rates relief currently available to pubs to include hotels as the accommodation sector faces sharp tax, wage and operating-cost increases. Some hotels are experiencing rateable-value rises exceeding 300%, while also absorbing higher national insurance contributions and an increasing national minimum wage. A dedicated support fund could allow hotels to phase in business rate rises over three years to ease immediate pressure. New powers for English mayors to introduce tourist levies risk reducing demand if costs are passed to guests, but redirecting a portion of levy revenue could help offset rising rateable values and utility costs.
Read at Business Matters
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