Chancellor's U-Turn Falls Short as Hospitality Sector Remains Furious Over Business Rates
The government's attempts to ease tensions in the hospitality sector with a 15% discount on business rates for pubs and live music venues appear to be too little, too late. The measure, worth £1,650 on average in the next tax year, may have placated some pub owners, but it fails to address the deeper concerns of a sector that feels unfairly targeted by the current system.
The hospitality industry accounts for six out of seven of the 3.5 million jobs created under the government's modern industrial strategy, yet its woes remain woefully overlooked. In contrast to the promised "lowest rates since 1991", businesses are crying foul over increases in rateable values and the withdrawal of Covid-era relief, which have disproportionately affected their bottom lines.
Labour's pre-election promise to overhaul the business rates system has been quietly shelved, with adjustments aimed at supporting smaller premises instead. Critics argue that these tweaks amount to little more than sticking plaster fixes, failing to address the root causes of the problem.
Industry insiders point to the Treasury's failure to model sector-specific impacts precisely and anticipate potential problems before they arise. The government's attempts to downplay the significance of business rates have only fueled the perception that it is neglecting the wider hospitality sector in favor of its high-growth industries.
The Treasury's refusal to commit to fundamental reform has left many wondering if the government truly understands the gravity of the situation. The ongoing saga will only intensify concerns about the government's treatment of the hospitality sector, potentially leading to further closures and job losses.
One thing is certain: business rates have become a ticking time bomb for the industry, with dire warnings already being sounded by employers' trade body Hospitality UK. The Chancellor would do well to learn from its mistakes and take concrete action to address the sector's deep-seated grievances before it's too late.
The government's attempts to ease tensions in the hospitality sector with a 15% discount on business rates for pubs and live music venues appear to be too little, too late. The measure, worth £1,650 on average in the next tax year, may have placated some pub owners, but it fails to address the deeper concerns of a sector that feels unfairly targeted by the current system.
The hospitality industry accounts for six out of seven of the 3.5 million jobs created under the government's modern industrial strategy, yet its woes remain woefully overlooked. In contrast to the promised "lowest rates since 1991", businesses are crying foul over increases in rateable values and the withdrawal of Covid-era relief, which have disproportionately affected their bottom lines.
Labour's pre-election promise to overhaul the business rates system has been quietly shelved, with adjustments aimed at supporting smaller premises instead. Critics argue that these tweaks amount to little more than sticking plaster fixes, failing to address the root causes of the problem.
Industry insiders point to the Treasury's failure to model sector-specific impacts precisely and anticipate potential problems before they arise. The government's attempts to downplay the significance of business rates have only fueled the perception that it is neglecting the wider hospitality sector in favor of its high-growth industries.
The Treasury's refusal to commit to fundamental reform has left many wondering if the government truly understands the gravity of the situation. The ongoing saga will only intensify concerns about the government's treatment of the hospitality sector, potentially leading to further closures and job losses.
One thing is certain: business rates have become a ticking time bomb for the industry, with dire warnings already being sounded by employers' trade body Hospitality UK. The Chancellor would do well to learn from its mistakes and take concrete action to address the sector's deep-seated grievances before it's too late.
they're just throwing some crumbs at them to shut up everyone knows this isn't a real solution, it's just a quick fix to save face 
they need to get their act together and actually listen to what the industry is saying, like how they even modelled sector-specific impacts precisely before making all these changes 
. I mean, have they even talked to any actual pub owners or staff? It feels like they're just making empty promises and not really listening to their concerns.
. That's just a whole other level of headache. Businesses are already dealing with so much stress, do we really need more red tape? The government needs to step up and actually address these issues, not just try to placate everyone with some half-baked solution 
. It's like they think the hospitality sector is going to magically fix itself or something 
. Newsflash: it won't unless we get real change.
this u-turn is super disappointing 
, 15% ain't gonna cut it for pubs & live music venues who've been struggling since covid 
. they need real change not just a bandaid fix 
. govnt's being too slow to listen & address the root of the problem which is the rates system itself 
. we need fundamental reform, not tweaks that don't go far enough 
. hospitality industry's been crying out for help & it feels like no one's listening 
. hope the chancellor takes this seriously & acts fast or we might see more closures & job losses 
. I mean, £1,650 isn't exactly going to make a huge dent in the grand scheme of things when it comes to business rates, especially considering how much some pubs are being hit with increased rateable values 
.
. I feel like the government is being super dismissive of the hospitality sector's concerns and it's only making things worse 
. The whole industry is already on edge, so I'm hoping they can find a way to address these deep-seated grievances without just putting a Band-Aid on it 
.
. they know rates are killing pubs, but still trying to fix symptoms not causes 
They're literally pouring petrol on a burning fire, expecting it to magically put itself out 
and honestly, I don't blame them. It's like the Chancellor is trying to please everyone except the ones who actually run the shows 
They need to take a step back, listen to their concerns, and do some real reform work 
Not just tweak here and there, but actual meaningful change 
We'll see how that plays out...
business rates are killing the industry and they know it, but still no concrete solutions in sight 
. They need to take a step back, listen to the industry, and actually address these problems that are killing businesses. 6 out of 7 jobs created under their strategy? That's just heartbreaking 
... something needs to change ASAP 