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Pubs Face Closure as Business Rates Skyrocket
28 Nov
Summary
- Small businesses face significant business rates increases.
- Hospitality sector warns of closures and job losses.
- Government claims support package protects businesses.
UK hospitality businesses are facing a sharp increase in business rates, with projections indicating significant jumps for pubs, restaurants, and small shops. Analysis suggests pubs could see their bills rise by 66%, restaurants by 45%, and small shops by 42%. This situation places immense pressure on an industry already struggling with increased hiring costs and minimum wage hikes.
Operators are warning that these changes, perceived as a "stealth tax," could lead to unprecedented business closures. Concerns are particularly high for family-run businesses and pubs, with projections of more closures than experienced during the pandemic. The fear is that rising operational costs will outstrip any potential for price increases, further squeezing already tight profit margins.
While the government has announced a £4.3 billion support package to limit business rates bills, some in the industry dismiss it as "smoke and mirrors." They argue that even with lower multipliers for smaller firms, the revaluation of rateable values means substantial increases are unavoidable. This has led to fears of reduced employment, investment, and fewer job opportunities for young people.
