Hospitality bosses urge Reeves to cut rates at upcoming Budget

Chief executives of Britain’s best-known and biggest pub groups and restaurants have penned an open letter to the chancellor Rachel Reeves, urging her to take action on business rates in next week’s Budget. Bosses of Fuller’s, Greene King, JD Wetherspoon, Stonegate Group, Young’s Pubs, Burger King, Caffe Nero, IHG Hotels, KFC and Pizza Pilgrims have backed the campaign from UKHospitality, which wants rates to be cut. UKHospitality said the sector was uniting behind the need for action to avert business rates bills quadrupling in April 2025, if current relief ends as planned on 31 March. It said inaction would cost the sector £914m in additional rates. The group has warned that, without action, investment will be curtailed, employment opportunities squandered and, ultimately, there will be higher levels of business failure. In the letter they said: “This Budget is the last chance to prevent bills quadrupling for high streets across the country. We are asking you to grasp this opportunity to deliver your manifesto commitment to fix business rates and protect businesses. We propose that your government introduces a new lower, permanent and universal multiplier for the hospitality sector, to be adopted across all nations of the UK. “All hospitality businesses should benefit from that multiplier, removing the cap that has acted as a disincentive to growth as employers decide that opening a second premises is simply not worth the cost.” Kate Nicholls, chief executive at UKHospitality, said: “This 170-strong cohort of business leaders across hospitality shows just how important addressing business rates is at the Budget. Inaction will lead to bills quadrupling and more venues shutting their doors for good, which will rob our towns and cities of vital community hubs.” She added: “Further closures will be so detrimental to the government’s growth agenda and put a dent in our sector’s ability to create places where people want to live, work and invest. If we don’t want to lose out on vital investment, job creation and regeneration of our high streets, then the chancellor needs to act to introduce a lower level of business rates for hospitality at the Budget.” Read the letter in full here. Photo: Mark Thomas/Shutterstock