Hospitality industry calls for urgent support from Chancellor
Hospitality leaders are making a final appeal to Rachel Reeves, urging her to shield the sector from a significant rise in business rates, which they argue could severely impact investment plans and hinder UK growth, reports BritPanorama.
Hotel owners assert that the anticipated rate hikes would undermine their investment initiatives and have called for the Chancellor to broaden a support package initially designed for pubs to encompass hotels as well. The hospitality sector argues that without such measures, they face an untenable financial burden.
Ravi Majithia, director of Avantis Hotels, which operates multiple Hilton properties, recently echoed this sentiment, declaring the projected £1.18 million increase in business rates over three years a “hammer blow to the industry.” He stated that the rise would complicate operational viability, particularly in light of additional pressures such as a possible tourist tax and increases in national insurance contributions.
Moreover, the Hilton Garden Inn hotel, owned by Lancashire Cricket Club, anticipates a staggering £183,000 increase in its rates next year, escalating to £198,000 by 2028. Club chief executive Daniel Gidney emphasized the crucial role hotels play in local economies, advocating for their inclusion in any support initiatives stemming from the government.
Celebrity chef Gordon Ramsay also weighed in last week, warning that without immediate assistance, hospitality businesses risk becoming “lambs to the slaughter.”
In response, a Treasury spokesperson reaffirmed the government’s commitment to the sector, citing a £4.3 billion support package aimed at mitigating bill increases, alongside a corporate tax rate cap at 25 percent.
The situation underscores ongoing pressures facing the UK hospitality industry, necessitating urgent dialogue between the sector and government to navigate these financial challenges effectively.
As the hospitality sector grapples with rising costs and demands for help, the potential for broader economic ripple effects remains a critical issue. Policymakers must consider the implications of inaction and strive to strike a balance between revenue raising and supporting key sectors that underpin local economies.
