Touted bailout for pubs accentuates pain for hotels and restaurants
Chancellor Rachel Reeves’s touted £300 million support package for pubs was today branded “a last-minute bandage on a bleeding sector” by hospitality industry leaders.
Lyle Bignon, Birmingham’s night-time economy ambassador, reacted with fury, calling it a “discriminatory half-measure that leaves whole swathes of the hospitality and night-time economy industries out in the cold.”
His anger was echoed by Alex Fox, CEO of the National Caterers Association, who said “singling out pubs for rates support” was “unfair and reckless.”
The pair spoke out after the government indicated Reeves was preparing a £300m bailout package for embattled pubs facing rates rises set to total 76% in the three years from April.
115% rates hike in coming years for hotels and restaurants
The move is intended to calm furious Labour backbenchers, althoughtoday it led to inevitable demands from hotels and restaurants, which UK Hospitality says face rises of up to 115%.
Bignon, the Night-Time Industry Association (NTIA)’s NTE (Night-Time Economy) ambassador for Birmingham, said: “The Chancellor’s decision to throw a £300 million lifeline at pubs feels less like decisive leadership and more like a last-minute bandage on a bleeding sector.
“While pubs are undeniably important and a key part of our ecosystem, this narrow support comes after months of industry warnings that spiralling business-rates hikes, averaging up to 76%, were pushing all hospitality and NTE venues to the brink.
“The Chancellor’s policies have led to closures across cities like Birmingham and right across the West Midlands.
‘Jobs are at risk unless comprehensive steps are taken’
“Targeting pubs alone ignores the reality that restaurants, hotels and night-time venues such as clubs are facing equally punishing cost pressures that threaten jobs, investment and the regeneration of our high streets.
“As the London Nightlife Taskforce report published this morning recommends, a national nightlife business rates reform and a cost relief scheme for nightlife space is urgently required – not discriminatory half-measures that leave whole swathes of the hospitality and NTE industries out in the cold.”
Fox said: “Singling out pubs for rates support while excluding local restaurants, cafés and other hospitality venues is unfair and reckless.
‘Flimsy two-tier system’
“Not only does it risk accelerating closures across the high street, it also damages confidence across the whole sector and creates a flimsy two-tier system.
“NCASS is urging the government to extend meaningful relief across the hospitality sector, including targeted support for all independent hospitality and catering businesses.”
