The government's announcement of targeted business rates relief for pubs and live music venues has sparked significant backlash from other sectors of the hospitality and retail industries, with trade bodies warning of severe consequences for overlooked businesses.
Targeted Support Excludes Key Sectors
On Tuesday, the Treasury revealed that every pub and live music venue in England would receive a 15% discount on their new business rates bills from 1st April, averaging £1,650 per establishment, alongside a two-year freeze on real-term increases. However, this support was not extended to other sectors affected by rates changes, including gyms, pharmacies, restaurants, cafes, convenience stores, and nightclubs.
'Simply Outrageous' Exclusion
Leading trade organisations have described the government's selective approach as "simply outrageous," arguing that many businesses now face "severe challenges" without comparable support. Henry Gregg, Chief Executive of the National Pharmacy Association representing 6,000 independent community pharmacies, stated that the rates increase could push some pharmacies "to the brink of collapse."
"It's simply outrageous that the government should offer business rate relief to pubs but ignore pharmacies that play a vital health role on thousands of our high streets," Gregg emphasised.
Hospitality-Wide Problem Demands Comprehensive Solution
UKHospitality, representing thousands of restaurants, pubs, hotels and cafes across the country, highlighted that rising business costs constitute a sector-wide issue requiring comprehensive solutions. Kate Nicholls, Chair of UKHospitality, warned that without "substantive solutions that genuinely reduce their costs," many businesses would face "increasingly tough decisions on business viability, jobs and prices for consumers."
Michael Kill, Chief Executive of the Night Time Industries Association representing nightclubs, restaurants and bars, described the announced support as "little more than a drop in the ocean" when considering the cumulative impact of recent budgets. He questioned what this "limited, narrowly targeted relief" would achieve for the hospitality and night-time economy overall.
Gyms and Leisure Facilities Face Steep Increases
The fitness industry expressed particular concern about being excluded from the relief measures. Huw Edwards, Chief Executive of ukactive, noted that business rates for some gyms, pools, and leisure centres could rise by as much as 60%, forcing many "to increase prices for consumers at a time of growing health inequalities."
Nicolas Denby from independent gym Sleven Fitness in Vauxhall, who works with approximately 150 independent gyms primarily in London and the southeast, revealed that their average business rates bill increase this year is expected to reach 145%.
"That's ridiculous. It has to be paid if the business does well or not. It's a really difficult situation," Denby stated, highlighting the disproportionate burden facing smaller fitness operators.
Convenience Stores Feel 'Neglected and Dismissed'
James Lowman, Chief Executive of the Association of Convenience Stores, expressed disappointment that local shops had been "passed over for additional support." He warned that for those facing rates increases of thousands of pounds in April, "difficult decisions will have to be made about investment, employment opportunities and the services that are provided to customers."
Government Defends Approach
While the government has faced criticism for its selective relief measures, some business leaders have defended the approach. The chief executive of Waterstones has publicly supported the government's business rates shake-up, though this perspective appears isolated among broader industry reactions.
The Treasury's announcement included parallel reviews of the methodology used to calculate rates for both pubs and hotels, suggesting potential future adjustments for additional sectors. However, trade bodies argue that immediate relief is necessary to prevent business closures and job losses across multiple industries.
As businesses across the hospitality, retail, and leisure sectors prepare for April's rates changes, the debate continues about whether targeted support adequately addresses the widespread challenges facing high street businesses throughout England.
