A national campaign has warned that the Government’s new business rates support package will fail to prevent a wave of closures on the British high street and in hospitality, describing the measures as a "sticking plaster on a gaping wound" that leaves the vast majority of the sector facing a cliff-edge in April.
The warning comes following Chancellor Rachel Reeves’ announcement on Tuesday of a targeted relief scheme for pubs and grassroots music venues. While the package offers a 15% discount to eligible sites, analysis by the Conservative’s Save Your Local campaign suggests the measures will assist only 1 in 16 businesses, leaving 94% of the hospitality and retail sector exposed to full tax liability when the new financial year begins.
The new rates regime coincides with the removal of the previous 75% Retail, Hospitality and Leisure (RHL) relief, creating what industry leaders are calling a "double whammy" of rising valuations and reduced support.
James Wright, an Exmoor farmer and campaigner said: 'Every town and village relies on an ecosystem of businesses, pubs, shops, and community hubs. But right now, they are being hammered by business rates. Offering a small discount to a tiny fraction of businesses while letting the rest drown is not a rescue plan. We cannot tax our way to prosperity. These businesses create the jobs that keep our area alive. Without them, our communities wither.'"
The introduction of new rateable values has already led to sharp projected increases for prominent local businesses. The Rest and Be Thankful Inn in Wheddon Cross faces a doubling of its business rates under the new valuation. Similarly, The Half Moon in Tiverton is set to see its annual bill rise by £12,500.
Even major regional employers are not immune. Butlin’s Minehead resort has been hit with a revaluation that increases its rateable value from £1.4 million to £5.2 million, a 270% rise that creates a multi-million pound "tax bombshell" for the local area. As a large operator, the resort falls into a new "high value" property band, meaning it faces a permanently higher tax rate than smaller businesses.
Campaigners are calling on the Treasury to urgently review the relief cap and the "high value" multiplier before the new tax year begins in April.
