A survey of pubs, breweries and hospitality businesses has revealed that jobs and investment plans would be threatened if business rates relief expires in April, causing bills to quadruple.
Research conducted by the British Beer and Pub Association, British Institute of Innkeeping and UKHospitality indicates that if full business rates return, 76% of businesses anticipate reduced profits, while 54% would be forced to cut employment. More than half report that planned investments would be cancelled, with 28% potentially closing at least one location.
The organisations jointly appealed to the Chancellor to maintain support for the sector, requesting a permanent, universal reduction in business rates until comprehensive reform is enacted.
The letter highlights a growing concern that, despite high consumer demand, pubs and restaurants are grappling with mounting costs and unsustainable tax burdens. Without relief, the average pub stands to lose £12,000, while high street restaurants could see business rates rise by as much as £30,000.
“This is a stark reminder of what faces our pubs, brewers and hospitality venues if business rates support isn’t addressed at the Budget,” a joint statement from the trade bodies said. “Many cash-strapped pubs, brewers, bars, restaurants and cafes, to name a few, would simply be unable to survive their rates bills quadrupling.”
They warn that, without action, half of businesses could cut jobs and cancel investment, with one in four considering the closure of at least one site. “This worst-case scenario outcome would rob towns and cities of vital community hubs,” they said.
“With the right investment and support, the beer, pub and hospitality sector has enormous potential to create more jobs, drive economic growth and regenerate our high streets,” the statement continued, adding: “Across hospitality, we are united in our ask to the Chancellor to continue business rates support through a lower, permanent and universal level of business rates or an extension of the current relief, while full reform of the system takes place.”
CGA by NIQ surveyed hospitality businesses in October 2024