Expert Insight
NEWS from
Kate Nicholls UKHospitality Chief Executive
The Prime Minister has asked the country for one last heave in the fight against coronavirus as he
delayed the final easing of restrictions to 19th July. Operators will this month be forgiven for thinking that they are equally due one last heave from Government when it comes to further support. The delay was severely disappointing for the sector but doubly so without the extension of support from Government – with the exception of the rent moratorium – with many operators now facing increased costs before they’re able to reopen or get back to unrestricted trading. It is another
bitter pill the industry must swallow, especially for those still struggling after 16 months of severe disruption caused by the pandemic. However, there is a way in which the Government could ease the financial hit that threatens to take many businesses closer to the brink of collapse.
The business rates holiday has now come to an end, so bills are starting to land on desks, after the rates kicked back in on 1 July. Yes, the 66% discount for the remainder of the financial year to 22 March 2022 is undoubtedly welcome, but with a cap on relief for larger businesses, many will be paying significant sums. When Government introduced the rates holiday, it provided a vital lifeline and it was also a signal to the sector that ministers were listening to us. This is why with the delay to the roadmap we have been calling for an extension to that holiday, to protect as many businesses and jobs as possible.
At the same time, we are urging businesses struggling to pay their bills to get in touch with their local authority at the earliest opportunity in order to discuss payment plans.
That’s because local authorities have the power to offer discretionary discounts or adjusted payment schemes to those businesses facing hardship. And it is operators with large or multiple venues, along with those that have invested in improving their sites, who will face higher rate bills under the current system.
But by talking to their local authorities, affected businesses can potentially maximise their cap at the earliest opportunity by proposing that relief is received in the first few months of bills being paid. That also has the benefit of reducing the administrative burden on firms - which right now need as much help as they can get if they’re to bounce back.
Encouragingly, we understand that local authorities are indeed ready to
support businesses that have been hardest hit by Covid-19, including, of course, those in the hospitality and leisure sectors. Operators will hopefully find a sympathetic ear when they make their approaches.
And while they’re doing that, we’ll continue to press the Government to reintroduce the business rates holiday and – further ahead – we are lobbying for wholesale business rates reform. The Treasury’s rates review is due this Autumn and we are making it absolutely clear that a more equitable rates system is essential for the long-term recovery of our sector. For those outside the hospitality sector, it’s perhaps easy to think that everything will instantly revert to ‘normal’ come 19th July, but we are all too aware that the recovery will take considerable time.
6
July 2021
www.venue-insight.com
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