New analysis from UKHospitality and the British Retail Consortium reveals that the sectors collectively pay one third of all business rates in the UK, while accounting for 9% of the economy.
Both organisations are united in their call for the Chancellor to implement a fairer level of business rates for hospitality and retail at the Budget, which will rebalance a system that unfairly punishes our high streets and town centres. This was a manifesto pledge from Labour ahead of the election.
Photo: Dreamstime.
A lower rate for hospitality and retail, which together employ around six million people, would unlock investment in our high streets, while also stemming the loss of shops, pubs, restaurants and hotels, and the jobs that rely on them.
In 2023/24, retail and hospitality businesses combined to pay almost £9 billion in business rates, 34% of the overall rates bill, while accounting for only 9% of the overall economy.
Current business rates relief for retail and hospitality is set to end on 31 March, costing the sectors a combined £2.5bn. That would take their bill up to £11bn, accounting for 44% of total rates.
Helen Dickinson, Chief Executive of the British Retail Consortium, says, 'Consumers want diverse and thriving high streets, but this is held back by the broken business rates system. It is the biggest barrier to local investment and prevents the creation of new shops and jobs.
Already, the industry pays far more than its fair share – retail accounts for 5% of the economy, but pays 7.4% of all business taxes, and over 20% of all business rates. The Budget is a great opportunity to right this imbalance, ensuring that retail pays a fairer level of business rates.'
More information:
BRC
www.brc.org.uk