UKHospitality chair Kate Nicholls criticised the “disproportionate” burden the Budget places on the sector, with “monumental increases in rateable values” causing pub and arcade operators across the country to question the viability of continued trade.

“Wage rises, holiday taxes and monumental increases in rateable values have put even further pressure on hospitality businesses, as a result of this Budget,” said Nicholls. “A 5p business rates discount is simply not enough to offset these costs and redress the damage it will do to business viability and job opportunities.”

“This is exactly why we called for the Government to use the maximum possible discount it had the power to implement, which could have genuinely delivered lower business rates. Instead, we have a situation where hospitality businesses are checking their wage bills and rateable values, and their hearts are sinking at the eye-watering increases before them.”

“Once again, the Government is trying to balance the books disproportionately on the backs of the high street – and risks creating a two-tier economy.”

“Our tax burden remains the highest in the economy and we need urgent action to reduce the cost of doing business. The only way to cut the cost of living is to reduce the cost of doing business, and this Budget does the opposite.”