Budget rates relief fails to satisfy hospitality sector

Summarised from 2 outlets · Updated 29 Oct, 00:44 · Archive

Chancellor John Healey's budget includes business rates relief for 70,000 high street firms, but a leading hospitality campaigner says it fails to address the sector's deeper challenges.

Chancellor John Healey announced an increase in gambling taxes to pay for business rates relief aimed at high street firms. The measure would take 70,000 businesses out of paying rates altogether, the Chancellor said, meaning half of shops, restaurants and gyms would pay no business rates at all.

Andy Lennox, re-elected to the Destination Management Board representing tourism across Bournemouth, Christchurch and Poole, criticised the budget as falling short of what the hospitality sector needs. He said rates relief means little when employment and operating costs continue rising, and that the relief has only helped 2.9 per cent of hospitality venues. He argued that the 'total bill landing on the doormat' is what matters for whether businesses can keep people employed and stay open.

Lennox called for a VAT cut, saying hospitality 'cannot keep running on warm words'. He appealed to MPs who have backed a VAT cut and warned others not to expect the sector's support while remaining silent about policies harming it.

Other budget measures include a £100 payment for around 20 million households in council tax bands A to D to help with soaring energy bills, costing £2.6 billion over the winter.

How it is being reported

• 'This budget was a disaster for hospitality'One of the UK's leading hospitality campaigners has described the budget as "a disaster for hospitality".Dorset Echo · 29 Oct, 00:00
• 'This budget was a disaster for hospitality'One of the UK's leading hospitality campaigners has described the budget as "a disaster for hospitality".Bournemouth Echo · 29 Oct, 00:00

In this story: Andy Lennox · John Healey · Destination Management Board · Bournemouth · Christchurch · Poole

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