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

by XPRESS, 17 August 2018

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.

Article Credit: The Caterer