Government tax measures on the UK hospitality sector have already forced 100,000 people to lose their jobs in the aftermath of the 2024 budget. There will be more people out of work in the coming months as the budget’s tax hikes continue to filter through. Now, we can likely expect the job loss figure to rise to quarter of a million if a new Treasury proposal on business rates is pushed through.
Just a few weeks ago the government was winning high praise from the hospitality sector for its intent to revolutionise the business rates system. It was considered a major step forward in tackling a regressive and inconsistent tax on the high street.
Soundings from Rachel Reeves, however, has turned that around.
The latest despatch on business rates from the Treasury has riled and rallied the hospitality base – the government, it suggests, doesn’t have a clue about the dangers facing the high street economy.
Reeves has now been warned that up to 120,000 jobs in retail and hospitality could be lost if she proceeds with plans to raise business rates on large commercial properties.
The Chancellor’s proposals would see around 5,000 major shops, new FEC projects, pubs and hotels face higher property taxes.
The British Retail Consortium and UK Hospitality say this could force 500 premises to close, threatening thousands of workers.
Labour intends to make larger businesses pay more to fund lower rates for smaller firms, aiming to create a fairer system and ensure online giants such as Amazon contribute more. However, industry leaders warn the move could backfire by driving big High Street operators out of business.
“Introducing a business rates surtax would only add to inflationary pressures, leading to store closures and job losses,” commented Helen Dickinson, chief executive of the BRC. “We urge the Chancellor to exempt these businesses from the surtax, helping safeguard hundreds of anchor stores and the vital jobs they sustain.”
The retail and hospitality sectors say they are already struggling with more than £10bn in additional costs from last year’s Budget. Supermarkets have also warned the measures could push food prices higher, worsening the cost-of-living crisis.
Job loss Rates continue
Helen Dickinson said……. “Introducing a business rates surtax would only add to inflationary pressures, leading to store closures and job losses……
