The government’s interim report into business rates reform has been hailed as a “positive” move by UKHospitality, however the trade body has called on the Chancellor and the Treasury to go further and apply the maximum possible discount to the multiplier for all hospitality properties under £500,000 rateable value.

UKHospitality has welcomed the government’s interim report on business rates, which suggests changes to Small Business Rates Relief and the end of “cliff edges” between rate bandings, however “critical” adjustments must still be made in the Budget.

Though the trade body agreed that the “positive” proposals would go some way to rebalancing the current system, it reiterated calls to apply the maximum possible discount to the multiplier for all hospitality properties under £500,000 rateable value. 

“For too long, the broken business rates system has unfairly punished hospitality businesses and I’m pleased that the Government is taking action to reform it, following many years of campaigning from UKHospitality,” said trade association chair Kate Nicholls.

“These measures to remove punitive cliff-edges and barriers to investment are positive and will help to rebalance the system, as will the Government’s commitment to lower business rates bills for hospitality businesses.”

Earlier this year, UKHospitality was instrumental in securing new legislation that allows the government to apply a discount to the multiplier of up to 20p in the pound, and Nicholls encouraged Treasury officials to now make full use of the new powers.

“That is the most significant and meaningful benefit that can come from these reforms, particularly with anticipated increases in rateable values coming into effect next April.”

“The maximum discount should be introduced alongside a zero rate for hospitality properties over £500,000 rateable value, to ensure the reform is in keeping with the Government’s intention to level the playing field for the entire high street.”