Get the latest hospitality news and inspiration straight to your inbox. Subscribe to our newsletter.

Hospitality business rates could rise by £50m overall next year, analysts warn

Written by:
Written by:
Hospitality business rates could rise by £50m overall next year, analysts warn

Analysts have warned a 2.5% boost to inflation could raise business rates across the hospitality sector overall by more than £50m next year if the headline rate of inflation remains.

The warning comes ahead of the release of September Consumer Price Index figure, which determines future business rate rises.

Real estate advisor Altus Group has warned hotels would face a spike of £19.8m overall next April, while pubs would take on £18.7m of the increase and restaurants £12.7m.

Last year the sting was taken out of business rate revaluations by the chancellor of the exchequer, Philip Hammond, who announced a £2.3b reprieve in his 2017 autumn budget by switching away from the Retail Price Index model.

He is now being called upon to freeze rate rises altogether.

Robert Hayton, head of UK business rates at Altus Group, said: “With our high streets engulfed in crisis and Brexit uncertainty hurting manufacturers and the services industries, the chancellor should be bold within his autumn budget later in the year through an unprecedented stimulus by freezing rate rises.”

HM Treasury has been contacted for comment.

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!). Subscribe today and save 51%

Start the discussion

Sign in to comment or register new account

Start the working day with

The Caterer’s free breakfast briefing email

Sign up now for:

  • The latest exclusives from across the industry
  • Innovations, new openings, business news and practical advice
  • The latest product innovations and supplier offers
Sign up for free