U.K. Hospitality Businesses Face Job Cuts and Cancellations if Business Rates Relief Ends

A recent survey revealed that jobs and investment plans in the hospitality industry might be in jeopardy if business rates relief ends in April. The study by the British Beer and Pub Association, British Institute of Innkeeping, and UKHospitality suggests that a return to full business rates could devastate the sector.

Survey results indicate that 76% of businesses would see a decrease in profit, 54% would reduce their workforce, 51% would cancel planned investments, and 28% would have to close at least one site.

In response to these alarming results, the three trade bodies have collectively written a letter to the Chancellor, requesting an extension of support in the upcoming Budget. They propose a lower, universal level of business rates until a full system reform is realized. The end of the relief could exacerbate an already precarious situation, with the average pub potentially losing £12,000 and a high street restaurant facing an increase in its business rates bill by £30,000.

The trade bodies emphasized the potential economic fallout if the business rates support isn’t addressed, warning that many establishments would not be able to cope with quadrupling rates bills. In addition to job cuts and canceled investments, a quarter of businesses would have to consider closing at least one site, potentially leading to the loss of community hubs.

The letter to the Chancellor, sent in October 2024, was signed by the Campaign for Real Ale (CAMRA), Independent Family Brewers of Britain, Hospitality Ulster, Pub is the Hub, and Society of Independent Brewers & Associates.