Labour’s business rates hike threatens seaside tourism, MPs warn
Coastal MPs have expressed alarm that Labour’s impending hike in business rates could jeopardize the future of the Great British seaside holiday. With the hospitality sector appealing to Chancellor BritPanorama for assistance, businesses are reported to be on the brink of bankruptcy.
The Chancellor is expected to unveil a support package aimed at saving pubs, yet this relief reportedly excludes hotels, shops, and restaurants, prompting concern from representatives in coastal constituencies. MPs warn that the measures could serve as the “final nail in the coffin” for struggling seaside resorts.
Lib Dem MP Steve Darling, representing Torbay, remarked, “Tourism is the beating heart of many coastal communities like mine – yet the Government has totally neglected us and now risks forcing many local hotels and restaurants to shut up shop.” He emphasized that the hospitality sector is still recovering from previous financial burdens like the jobs tax and soaring energy bills, and the new business rates could exacerbate the situation.
Darling further urged ministers to reconsider the proposed increase, stating, “this could be the final nail in the coffin for the Great British seaside holiday and the hotels and restaurants that make it.”
In a similar vein, Conservative MP Alison Griffiths of Bognor Regis and Littlehampton warned against the detrimental impact of Labour’s policies on seaside towns. She underscored the role of hotels in sustaining local economies and creating employment, stating, “Her business shouldn’t pay the price for this Government’s incompetence.”
The proposed reforms in business rates would result in a staggering 115 percent increase for the average hotel, amounting to an additional £205,200 in rates over three years, according to estimates from UKHospitality. This drastic rise has prompted calls from industry leaders for a more comprehensive solution that encompasses all areas of the hospitality sector.
Jon Hendry Pickup, the CEO of Butlin’s, highlighted the disproportionate effects of business rates hikes on hospitality businesses amidst other financial pressures. He stated, “We’re happy to see that the government recognises the plight of pubs, but knee-jerk responses do not create confidence for the sector as a whole.”
Concerns from the hospitality sector have been echoed by Travelodge’s Jo Boydell, who warned that their own rates could double over the next three years, insisting that business backlash should not come as a surprise. A Treasury spokesperson defended the government’s stance, claiming support for hospitality businesses through a £4.3 billion support package and measures to mitigate rising costs.
As the situation unfolds, the implications for Britain’s coastal tourism remain critical, with local economies hanging in the balance.
This developing narrative underscores a pivotal moment for the UK’s hospitality sector, where government action could either alleviate or exacerbate existing challenges. Policymaking in this domain will need to balance immediate fiscal pressures with the long-term viability of coastal communities essential to Britain’s cultural fabric.
