The depth of the business community’s concerns should not be underestimated. They fear that soon to be implemented changes to business rates will hit pubs and hospitality venues across England hard. Immediately following the November Budget, the Chancellor of the Exchequer made a surprising U-turn. Business rate discounts will reduce from 75% to 40% and no longer be available at all from April. A lot of these different stakeholders are understandably calling on the government to throw a lifeline to pubs. They are seeking support for independent retailers and other hurt venues.
Andrew Goodacre, chief executive of the national organization representing independent retailers, was dismayed by the government’s handling of the announcement. He highlighted that independent retailers face the same challenges as pubs and should not be excluded from discussions regarding additional support. Maybe it’s time for independent retailers to take the drastic step of standing up for what they are complaining about.
“Perhaps independent retailers need to follow the pubs’ example and start banning MPs from their premises too.” – Andrew Goodacre
Among those getting burned the most is the hospitality industry. Dame Caroline Dinenage, another Conservative MP, underlined that the country’s theatres, music halls and cinemas are burning in order to survive. She has led the charge in securing support by calling on the Chancellor, describing in horrifying detail the circumstances many of these venues are experiencing.
Rachel Reeves, the influential new head of government, focuses on a bad problem. While the national government is reducing tax rates on pubs and the hospitality sector as a whole, this move is effectively cancelled out by the Independent Valuation Office’s recent increase in property valuations for such businesses. She acknowledged the ongoing struggles, stating,
“I want to support our pubs; I want to support our high streets. That’s why we made the change to the rates. But I recognise that many paths are still struggling and we’re working with them.” – Rachel Reeves
The expected modest departure on movement on business rate hikes for pubs follows urgent calls for more comprehensive help. Jon Collins, chief executive of LIVE, which represents music venues, added that if the government is serious about changing its approach to business rates for pubs, it needs to start listening to other venues too. His comments indicate a welcome alarm bell ringing in the sector that all entertainment/leisure facilities deserve fair play.
“If the government is preparing a U-turn on business rates for pubs, it must not leave live events and arenas behind.” – Jon Collins
Huw Edwards, the chief executive of ukactive, warned that the move would have dire effects. He warned that gyms and leisure centres faced bankruptcy if they are left out from any financial support package. More negligence like that, he cautioned, would drive up prices and force fewer services. At worst, it might even lead to gym closures and layoffs in our communities.
“Failure to provide a business rates support package to gyms, pools and leisure centres will lead to higher prices, reduced services, redundancies and in some cases the loss of gyms from our communities,” – Huw Edwards
Helen Dickinson, chief executive of the British Retail Consortium (BRC), expressed alarm at where we are. She called out the federal government’s response to the crisis as insufficient. She referred to it as a sticking plaster instead of dealing with root causes of problems in the business rate system.
“This latest announcement looks like another sticking plaster on a broken system rather than the more fundamental reform required.” – Helen Dickinson
Landlords and pub owners are already voicing their concerns on the imminent rate increases. In retaliation, more than 1,000 pubs went on a radical offensive by blacklisting Labour MPs from entering their pubs of choice as retribution. This effort is indicative of a larger trend of intensified opposition by various industries to federal policies they see as harmful to their businesses.
There are non-financial aspects to these changes too. They threaten the very fabric of our local communities, where these same pubs and venues serve an essential social function that keeps us connected. Stakeholders from every sector have echoed the need and urgency for our leaders in government to act. Among many things, they call for deeper and wider support that acknowledges the needs of everyone impacted.