UKHospitality has welcomed the shadow chancellor’s claim that the party wants to “abolish” business rates.
Speaking at the Conservative Party Conference this week, Mel Stride said that businesses need “hope” and claimed that 89,000 jobs have been lost in the hospitality sector alone.
He said: “We need to get business rates down. In fact we need to go further. Much, much, further. So today I can announce that as a direct result of getting public spending under control, a future Conservative government will completely abolish business rates for shops and pubs on our high streets. End of.”
Kate Nicholls, chair of UKHospitality, said: “The business rates system is completely broken, with hospitality paying billions more than its fair share for decades.
“This is welcome recognition from the Shadow Chancellor of the need to reform the business rates system, as well as the need to prioritise and back our high streets to drive growth, attract investment and support our communities.”
She added: “Reducing the tax burden on hospitality is urgent, and that needs to start at the Budget with the maximum possible business rates discount applied to all hospitality properties under £500,000 rateable value. This maximum discount should be implemented alongside a commitment that no hospitality property above £500,000 rateable value pays more in rates.
“Hospitality businesses are being taxed out, with 84,000 job losses since the cost increases in the last Budget. The November Budget needs to lower business rates, fix NICs and cut VAT.”
