​Trade Associations Lobby for Fair Business Rates Adjustment

Leading trade associations, including UKHospitality and the British Beer and Pub Association, have urgently appealed to the Chancellor to adjust the forthcoming April business rates to reflect current inflation rates. In a collective effort to mitigate financial pressure on the hospitality sector, these organisations emphasise the detrimental impact of the scheduled 6.7% increase in business rates - a figure tied to the preceding September's Consumer Price Index (CPI). They propose a shift towards the Bank of England's Q2 forecast for inflation, which is currently projected at a more manageable 2.0%.

The signatories, which also encompass the Association of Convenience Stores, British Independent Retailers Association, and British Retail Consortium, argue for an update to the calculation method. They suggest April 2024's rates should correspond to the CPI of the same month, advocating for adjustments that echo real-time economic conditions and alleviate undue financial strains on businesses striving to rejuvenate communities nationwide.

Kate Nicholls, CEO of UKHospitality, highlighted the dire implications of the April rate surge, noting its potential to compel businesses to reduce operations, halt investments, or even shut down permanently. She underscored the necessity of aligning the rate increase with the actual economic landscape to support business sustainability.

Echoing this sentiment, Emma McClarkin, CEO of the British Beer and Pub Association, pointed out the specific challenges facing larger pubs. She stressed the critical need for rate capping as part of the Chancellor's upcoming budget announcement, citing the closure of numerous pubs last year and the looming threat of further shutdowns without intervention. McClarkin advocates for comprehensive financial relief measures, including beer duty and VAT reduction adjustments, to counteract soaring operational costs and keep pub-going affordable for consumers.

We invite your thoughts and comments below. How do you perceive the proposed adjustments to business rates? Share your insights and join the conversation.