Half of ‘pubs and hospitality businesses’ would cut jobs and cancel investment, if business rates relief ends

A snap survey of pubs, brewers and hospitality businesses shows that both jobs and investment plans would be at risk if bills quadrupled when relief ends in April.

A joint survey conducted by the British Beer and Pub Association, British Institute of Innkeeping and UKHospitality revealed the shocking impact a return to full business rates would have on the sector. It showed that:

• 76% would experience lower profit.
• 54% would reduce their employment levels, risking job losses.
• 51% would cancel planned investment.
• 28% would have to close at least one site.

The trade bodies united to write to the Chancellor with a common ask for support to be extended at the Budget through a lower, permanent and universal level of business rates, as a bridge until full reform of the system is delivered.

The letter sounds the alarm that, despite strong consumer demand to support the sector, profit margins are being eroded by an unsustainable tax burden and rising costs.

They warn that the end of relief would worsen an already perilous situation. The average pub could stand to lose £12,000, while a high street restaurant could see its business rates bill increase by £30,000.

In a joint statement, the trade bodies said: “This is a stark reminder of what faces our pubs, brewers and hospitality venues if business rates support isn’t addressed at the Budget.

“Many cash-strapped pubs, brewers, bars, restaurants and cafes, to name a few, would simply be unable to survive their rates bills quadrupling.

“Not only does inaction risk half of businesses having to cut jobs and cancel investment, but it also means a quarter would have to consider closing at least one site, which might be their entire business. This worst-case scenario outcome would rob towns and cities of vital community hubs.

“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.

“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.”