With business rates relief set to end completely in April 2024, businesses across the UK are facing a significant challenge in the coming months. As things stand, companies will experience a sharp increase in costs. For example, a business with a rateable value of £80,000 will see its annual business rates bill skyrocket from £11,000 to £44,000. This hike presents a major financial burden on businesses, particularly those in the hospitality sector, already grappling with rising costs and economic uncertainty.
A Fairer Solution for the Hospitality Industry
In response to this looming crisis, UK Hospitality has proposed a new, lower, permanent, and universal business rates multiplier specifically for the hospitality sector. This proposal aims to replace the current system of unpredictable annual reliefs, offering businesses long-term financial certainty.
A permanent rate would allow businesses to plan more reliably, make long-term investments, and grow without the fear of sudden cost hikes. It would ensure that the hospitality industry, which plays such a crucial role in the UK economy, has a fairer, more sustainable business rate system moving forward.
All eyes will be on Chancellor Rachel Reeves as she presents the first Budget of the new parliament on 30 October 2024. Many in the hospitality sector hope for meaningful support and relief in what could be a defining moment for the industry. The upcoming Budget announcement will reveal whether the government intends to implement long-term solutions or leave businesses to bear the full brunt of increased rates.
At AGS Group, we understand the impact this could have on businesses, and we are watching the developments closely. Whatever the outcome, we are committed to supporting our clients through these challenging times.
Let AGS Group Help You Navigate the Future
At AGS Group, we work with leading brands like Costa Coffee, Domino’s, and Tim Hortons, providing expert facilities management (FM) solutions that allow them to focus on their core business operations. We can do the same for you.
As the industry braces for potential changes, let AGS Group take care of your FM needs, ensuring your business runs smoothly regardless of external pressures. Contact us today to learn how we can help you navigate this uncertain landscape and achieve success in the months ahead.
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