Chancellor's Pub Relief Won't Quell Business Rate Storm
A temporary reprieve for pubs in the shape of a 15% discount and two-year freeze may have calmed some nerves, but it won't silence the growing chorus of discontent from the hospitality sector. The move comes just as businesses were bracing themselves for crippling increases in rates that could ultimately spell disaster.
Business rates are now poised to become an ever-more significant burden on cash-strapped pubs, restaurants and hotels, as the sector grapples with inflationary pressures and rising costs. A further 115% increase is predicted for some hotels in England over the next three years, leaving many fearing closure and job losses.
The decision not to extend the relief package beyond pubs and live music venues highlights a fundamental flaw in government policy. The hospitality sector accounts for six out of seven of the 3.5 million jobs created by business rates and yet was left high-and-dry. It's a stark reminder that the government appears only interested in certain "high-growth" sectors while ignoring the concerns of others.
Critics argue that the Treasury failed to anticipate the industry's outrage, possibly due to inadequate modelling of sector-specific impacts. The Chancellor had previously boasted about reducing business rates but overshadowed this claim with an acknowledgment that rateable values had increased significantly during the pandemic.
The bigger issue lies in the lack of fundamental reform promised by Labour during their election campaign. While tweaks were offered for smaller premises, no switch to a fairer system was forthcoming. This raises questions over whether the government has genuinely learned from its mistakes or merely patched up the existing framework.
One thing is certain: this saga will only intensify as businesses struggle with rising costs and stagnant government policies. To avoid further embarrassment, the Chancellor should model sector-by-sector impacts with greater precision and deliver on their promises – not just a series of token gestures that offer temporary relief but little more.
A temporary reprieve for pubs in the shape of a 15% discount and two-year freeze may have calmed some nerves, but it won't silence the growing chorus of discontent from the hospitality sector. The move comes just as businesses were bracing themselves for crippling increases in rates that could ultimately spell disaster.
Business rates are now poised to become an ever-more significant burden on cash-strapped pubs, restaurants and hotels, as the sector grapples with inflationary pressures and rising costs. A further 115% increase is predicted for some hotels in England over the next three years, leaving many fearing closure and job losses.
The decision not to extend the relief package beyond pubs and live music venues highlights a fundamental flaw in government policy. The hospitality sector accounts for six out of seven of the 3.5 million jobs created by business rates and yet was left high-and-dry. It's a stark reminder that the government appears only interested in certain "high-growth" sectors while ignoring the concerns of others.
Critics argue that the Treasury failed to anticipate the industry's outrage, possibly due to inadequate modelling of sector-specific impacts. The Chancellor had previously boasted about reducing business rates but overshadowed this claim with an acknowledgment that rateable values had increased significantly during the pandemic.
The bigger issue lies in the lack of fundamental reform promised by Labour during their election campaign. While tweaks were offered for smaller premises, no switch to a fairer system was forthcoming. This raises questions over whether the government has genuinely learned from its mistakes or merely patched up the existing framework.
One thing is certain: this saga will only intensify as businesses struggle with rising costs and stagnant government policies. To avoid further embarrassment, the Chancellor should model sector-by-sector impacts with greater precision and deliver on their promises – not just a series of token gestures that offer temporary relief but little more.
they're already struggling to stay afloat and now this new business rate hike is gonna be like the final nail in the coffin it's crazy how the gov't isn't taking into account all the other jobs that rely on these businesses you know, there's gotta be some way to make things more fair for everyone involved 
I'm still scratching my head over this one... 15% discount? Two years freeze? That's like throwing your grandma a pity party. 
It's like they're saying "good luck with that". I mean, what even is a 'fairer system'? Is it too much to ask for some actual change here? 
The Labour guys had some sweet promises during the election, but now they're MIA. 
. Business rates are still a total nightmare, and it's only gonna get worse if the government doesn't step up their game 
.
. I mean, I get it, business rates are always gonna be a thing, but the government needs to step up and help out these small businesses more! They're not just a bunch of fancy restaurants or hotels, they're community hubs too. People go there for events, birthdays, and just to hang out with friends. It's like, what about the people who rely on these places for their livelihood? 
The 15% discount is nice, but it's not gonna cut it. We need real change here! 
And what's up with this "one size fits all" approach? Some businesses are already struggling to stay afloat...this temporary reprieve won't last forever 
#PubProblems #BusinessRates #SmallBusinessSupport
they're already struggling to make ends meet, and now this 15% discount doesn't even come close to covering the rising costs... i feel for all those small pub owners trying to keep their businesses afloat 
they're already struggling to make ends meet and now this new business rate increase is gonna be a nightmare 
I mean, it's not like it's a new thing for them to worry about business rates 
Not just patching up old problems with quick fixes 
anyway, labour was supposed to bring some real change but now its all just a bunch of lip service lol
they need more than just 15% discount & 2 yr freeze... business rates r still gonna kill them 
think gov should take a closer look at their policy & make some real changes 
no more token gestures, pls 
. The gov's all like "Oh no, pubs will be okay" but really they're just stringing them along. 15% discount and a two-year freeze? That's cute, but the real problem is the looming 115% increase in rates for hotels... it's like they're setting them up for disaster 
. I mean, come on, gov! You can't just ignore the concerns of businesses that are already struggling to stay afloat. Labour promised more fundamental reform and now it seems like we're stuck with more of the same