Government urged to extend business rates review to support travel firms

Travel industry leaders have urged the government to consider the wider retail sector in any review of business rates following the announcement of support for pubs and hotels in England and Wales.

The government announced on Monday (August 24) that it had appointed business rates expert Jerry Schurder to lead a review of how rates are calculated for pubs and hotels, saying the move would “build a fairer system for the future”.

It followed a previous announcement of a 20% cut in rates for pubs, social clubs and live music venues, which will come into force in April.

More: Proposed business rates cut ‘must be extended’, retail leaders say

Proposed business rates cut ‘must be extended’, retail leaders say [Jan 26]

Abta director of public affairs Luke Petherbridge said: “This review is specifically looking at systemic issues seen in recent business rates revaluations, which have typically disadvantaged the restaurant and pub sector more than other retail businesses.

“However, the prime minister and other government ministers have also separately spoken about the need to support true high street businesses that add value to local communities.”

He added: “Reform of the retail business rates system must also be part of that – ensuring businesses that are an important part of towns and cities across the country, including travel agents, many of whom are independent smaller businesses, are not disadvantaged by the business rates system.”

Julia Lo Bue-Said, chief executive of Advantage Travel Partnership, said the review for pubs and hotels was to be welcomed, but added: “We join the calls from the British Chambers of Commerce and Federation of Small Businesses that the review needs to be wider – as was promised by this government at the election.”

She said: “Advantage Travel Partnership represents hundreds of independent travel businesses and travel agents and we know they interconnect with many other sub-sectors of the visitor economy – such as tour operators, hotels, restaurants, attractions and transport providers to increase town centre footfall, employ local people, support neighbouring retailers and keep spending local.

“Advantage members are entrepreneurial SMEs. Government has spoken about reducing barriers to growth, backing entrepreneurs and giving businesses the confidence to invest.

“Supporting one part of that ecosystem while overlooking others risks limiting the overall impact.”

Lo Bue-Said added: “A review of the business rates system is important to level the playing field between physical and online retail without raising costs for multi-channel retailers.

“Advantage would like to see the government implement a ‘growth check’ for every policy affecting businesses to include an assessment on how it relates to SMEs.

“If policymakers are serious about unlocking the full potential of the UK’s economy, support must extend beyond a single segment of hospitality.”