PUBS and restaurants will be hit by an extra £32,000 business rates bill over the next three years, a shock analysis has found.
Industry chiefs are warning that steeper property tax rates will speed up price hikes, job losses and business closures in the under-pressure sector.
The Chancellor announced in her recent Budget that businesses would enjoy the “lowest rates since 1991”.
But a shake-up to the rateable values of premises, combined with temporary rates relief being replaced with a less generous system, will see thousands of independent businesses paying more.
UKHospitality figures have now found that, even when factoring in the new rates and relief, the average pub, bar or restaurant will be forced to pay an extra £32,714 in business rates by 2029.
“Business rates tax hikes will hit every city, town, village and high street in the country,” UKHospitality chief executive Allen Simpson said.
“Unfortunately, not one area of the country is spared.”
He added that the business rates increase over three years will be “simply unsustainable for many businesses to absorb”.
“Price increases, job losses and business closures will all accelerate – that’s bad news for local economies, local jobs and local high streets.”
Next year, the average hospitality property in England will pay £23,961 in rates – an increase of £3,126 on the current average of £20,835, according to the analysis.
It will then pay £30,849 the following year – an increase of £10,014 on today.
And in the 2028/29 tax year, it will pay £40,409 – a rise of £19,574.
The industry body is calling on the Government to increase the business rates discount for hospitality from 5p to the full 20p permitted in legislation.
