The end of business rates relief will sting hospitality with a £928 million bill in April unless the government acts in the Budget, warns UKHospitality.

Hospitality and leisure businesses face their bills quadrupling if business rates relief ends as planned on 31 March, it adds.

The trade body is calling for the Chancellor to introduce a new lower, permanent and universal rate for hospitality’s business rates at the Budget on 30 October.

It says the current business rates system unfairly penalises hospitality, with the sector paying three times more than it should do. UKHospitality wants to see a lower, permanent and universal rate, or ‘multiplier’, for hospitality businesses.

Kate Nicholls, Chief Executive of UKHospitality, said:

‘Hospitality businesses are facing a devastating cliff-edge next April, when many will see their bills quadruple.

‘The scale of this almost billion-pound tax bombshell is just not viable. Many will face risk of closure, be forced to let people go to stay afloat, or shelve their investment plans.

‘There has to be a solution that avoids this cliff edge, and a lower, permanent and universal multiplier for hospitality would deliver that.

‘Not only would it give certainty and stability to businesses, but it would allow the government to begin delivering on its own manifesto commitment.

‘At the Budget, the Chancellor can choose to act and take the brakes off the sector’s growth by avoiding this cliff-edge. I hope she does just that because inaction could be fatal.’

Internet links: UKHospitality website