UK Hospitality Firms Cry Out for Relief Amid Airport Deal
Businesses from the hospitality sector, including hotels, restaurants, nightclubs, and cafes, are warning that they will be left reeling if current support measures to mitigate rising business rates expire. Despite being among the biggest beneficiaries of a multibillion-pound package of state support announced by Chancellor Rishi Sunak in last month's budget, many firms are still struggling to make ends meet.
Under the transitional relief plan, businesses facing significant rateable value increases will only see their bills rise by 15% this year or £800 for the smallest. However, many hospitality firms fear that even this support is insufficient and that they face an uncertain future as costs continue to mount. Rising energy prices, increased minimum wage rates, and higher taxes on alcohol are all squeezing profits and pushing businesses to consider increasing prices to cover costs.
The Night Times Industries Association (NTIA) has expressed particular concerns over the impact of rising business rates on nightclubs and live music venues. The industry has already lost a third of its clubs since 2017, yet those that remain face higher rates and no access to relief. "We have explicitly excluded" these businesses from additional help, said NTIA chief executive Michael Kill, who warned that the sector is likely to suffer more closures.
Industry bodies UKHospitality and AirportsUK have also expressed concerns over the lack of support for hospitality firms. The latter noted that airports, including Heathrow, are set to benefit from a significant discount on their rates bill, but this will still leave them with rate increases, potentially forcing major investments to be reevaluated.
Industry experts argue that the government needs to take concrete action to address the problem of rising business rates and prevent further closures. Kate Nicholls, chair of UKHospitality, said: "These figures are damning in showing how crazy, distorting and broken business rates is." She called for "root and branch reform" to tackle the issue once and for all.
As businesses continue to struggle under the weight of rising costs, it remains to be seen whether government support will be enough to mitigate the impact.
Businesses from the hospitality sector, including hotels, restaurants, nightclubs, and cafes, are warning that they will be left reeling if current support measures to mitigate rising business rates expire. Despite being among the biggest beneficiaries of a multibillion-pound package of state support announced by Chancellor Rishi Sunak in last month's budget, many firms are still struggling to make ends meet.
Under the transitional relief plan, businesses facing significant rateable value increases will only see their bills rise by 15% this year or £800 for the smallest. However, many hospitality firms fear that even this support is insufficient and that they face an uncertain future as costs continue to mount. Rising energy prices, increased minimum wage rates, and higher taxes on alcohol are all squeezing profits and pushing businesses to consider increasing prices to cover costs.
The Night Times Industries Association (NTIA) has expressed particular concerns over the impact of rising business rates on nightclubs and live music venues. The industry has already lost a third of its clubs since 2017, yet those that remain face higher rates and no access to relief. "We have explicitly excluded" these businesses from additional help, said NTIA chief executive Michael Kill, who warned that the sector is likely to suffer more closures.
Industry bodies UKHospitality and AirportsUK have also expressed concerns over the lack of support for hospitality firms. The latter noted that airports, including Heathrow, are set to benefit from a significant discount on their rates bill, but this will still leave them with rate increases, potentially forcing major investments to be reevaluated.
Industry experts argue that the government needs to take concrete action to address the problem of rising business rates and prevent further closures. Kate Nicholls, chair of UKHospitality, said: "These figures are damning in showing how crazy, distorting and broken business rates is." She called for "root and branch reform" to tackle the issue once and for all.
As businesses continue to struggle under the weight of rising costs, it remains to be seen whether government support will be enough to mitigate the impact.
airports are doing alright I guess tho they're still making a ton from passenger fees... meanwhile hotels & restaurants are just trying to survive on thin margins 
I mean, what's going on here? These hospitality firms are basically begging for help but the gov is like "oh, we've got your back"... not quite 
. 15% or £800 - that's not exactly a life-saver, especially with energy prices and min wage hikes piling up. And don't even get me started on nightclubs, they're already dying and now you're taking away the one thing that could've kept them afloat? 
i mean they already gave em a multibillion pound package lol its not like they r broke or anythin 
but seriously, 15% increase is still a big deal, especially for small businesses. cant they just make rates go back down or sumthin? 
and cant afford to raise prices 
so they dont make a loss 
. Govt needs 2 step in 
and sort out these rates 
it cant be like this anymore 
.
15% lil reduction in business rates ain't gonna cut it 
ntia chief exec michael kill is right, nightclubs r already losin clubs like crazy & no one's helpin 
ukhospitality & airportsuk r speakin 4 themselves rn 
government needs 2 step in n sort this out ASAP 
. They did get some help last month, but it's not enough to cover all their costs 
It's just not fair that these businesses are shouldering the brunt of rising costs while others get a break. Let's hope they can find a solution before it's too late... 
. Rising business rates, energy prices, minimum wage increases... it's like a ticking time bomb for their tiny profits 
. And don't even get me started on the NTIA chief executive's comment about excluding nightclubs and live music venues from support 
The gov needs to step up and do something concrete to fix this 
they work so hard just to pay those bills & its not fair that the gov isnt doin enough to help them out 
️ or else were gonna see more closures & itll be a real shame for our communities 
we need more than just Band-Aid solutions here 
... i've seen this happen in other places, businesses get squeezed out by the gov's policies... we need concrete action here 
. These businesses are already strugglin', and then you throw in these rising energy prices, higher wages, and more taxes... it's like they're gettin' hit from all sides 
.
. The gov needs to take a hard look at these rates and figure out a way to make 'em more reasonable 
.
!
. It's like, they're already dying out at an alarming rate... do we really need more closures? This is what I mean by system failure... how can you expect businesses to thrive when everything's stacked against them? We need real change, not just a Band-Aid solution 
.