Hospitality chiefs will hold ‘tax talks’ with Rachel Reeves for High Street boost

HOSPITALITY chiefs are hopeful of a breakthrough on business rates support that will extend beyond help for the pubs sector.

Bosses representing hotels and restaurants are due to sit down with the Treasury next week as they seek a boost for the High Street.

Rachel Reeves, Chancellor of the Exchequer, departs Downing Street.
Hospitality chiefs will hold ‘tax talks’ with Rachel Reeves for a High Street boostCredit: Alamy

The move comes after Chancellor Rachel Reeves was forced into a u-turn on boozers after property rate changes would have left many on the brink of bankruptcy.

Treasury Minister Dan Tomlinson is expected to hold talks with the sector following a major backlash over a huge rise in rates.

Music venues are also demanding more support.

UKHospitality chair Kate Nicholls said support needs to go beyond pubs.

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She said: “Neighbourhood restaurants, independent hotels and inns – they are at the heart of their communities.

“Providing local jobs and supporting local farmers and food manufacturers. It needs a whole hospitality solution.”

The u-turn follows other climb downs on winter fuel payments, welfare savings and the family farm tax.

Meanwhile, analysis by the hospitality sector show business rates in Sir Keir Starmer’s constituency will rise by £96,000 over three years.

Each venue in the sector will pay an extra £12,000 in Rachel Reeves Leeds’ constituency and £13,000 in Business Secretary’s Peter Kyle’s patch.

Steve Sayer, Senior Vice President and General Manager at The O2 venue in London, said: “The Government has rightly admitted that hiking Business Rates would have been catastrophic for pubs.

“So why is it happy to let live music venues go under? Venues are facing the same brutal tax grab at a time when costs are already soaring.”

He added that this policy will “wipe out” grassroots venues where British music is born as well as putting arenas under immense financial pressure with a knock-on effect of increasing ticket prices.

The campaign against business rates even saw 1,000 pubs nationwide ban Labour MPs from their premises.

Shadow Chancellor Sir Mel Stride has written to the Chancellor demanding she does more than help pubs.

He said: “Rachel Reeves chose higher business rates over backing our high streets.

“A last-minute u-turn on Labour’s Pubs Tax isn’t enough.

“Shops, cafes and hotels need clarity – and permanent cuts to business rates, not temporary fixes.

The Treasury has said that most business properties will benefit from £4.3 billion of support in the next three years.

Plans also include licensing reforms which will allow pubs to open later and offer pavement drinks.

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