High street closures could sweep the UK at an accelerated rate without tax reform, business leaders are warning, with thousands of venues at risk of closure.
Store closures and bank branch shut downs have increased in recently years but UKHosplitality is urging the new Labour Government to tackle business rate relief.
The trade body is sounding the alarm that venues may be forced to close due to be hit by a nearly £1billion tax bill if relief is not extended.
Bills are expected to rise by thousands of pounds for businesses if the existing relief scheme ends on March 31, 2025.
According to UKHospitality, a local pub could see an tax hike of £11,000, a town centre restaurant an extra £30,000, and a seaside hotel could be left with an increase of £40,000.
Ahead of Chancellor Rachel Reeves' Autumn Budget, the trade association is calling on Labour to keep to its election manifesto pledge and reform the business rates system.
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High streets have been hit by a wave of store closures since the pandemic, on top of banks shutting down PAPrior to July's election, Labour pledged to “level the playing field” between high street businesses and online marketplaces by reforming the tax.
Despite this, there was no mention of a tax overhaul during the King's Speech during the summer.
Specifically, UKHospitality is calling for a lower, permanent and universal rate for hospitality sectors business rates at the Budget.
With the business rates relief ending in April, venues operating within the industry are expected to be slapped with with a £928million bill.
Roxane Marjoram, who co-owns several pubs in and around Suffolk with her husband David, claims the the likelihood of soaring rate bill is making her live "with dread.
She explained: "A quadrupling of rates bills, if the current relief ends, will fill all small operators like us with dread.
“Even though we’re operating in an environment with significantly higher costs post-Covid, pubs and restaurants like ours can and will play a strong part in economic recovery going forward, if we’re supported with fair rates bills."
Kate Nicholls, the chief executive of UKHospitality, reminded the Government of its past promise to stand by high street business owners.
“Hospitality businesses are facing a devastating cliff-edge next April, when many will see their bills quadruple," she explained.
“The scale of this almost billion-pound tax bombshell is just not viable. Many will face risk of closure, be forced to let people go to stay afloat, or shelve their investment plans.
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Business rate reliefs for pubs, shops and restaurants will be cut from 75 per cent to 40 per centPEXELS“None of those outcomes are good for the people we employ, the communities we serve, or the economic growth the Government wants to deliver.
“There has to be a solution that avoids this cliff edge, and a lower, permanent and universal multiplier for hospitality would deliver that.
“Not only would it give certainty and stability to businesses, but it would allow the Government to begin delivering on its own manifesto commitment.
GB News has contacted the Treasury for comment.