UKHospitality has responded to today’s report published by the Institute for Fiscal Studies (IFS).
The economic research institute’s study found the 147 English councils piloting 100% business rates retention could gain around £873m in extra funding in 2018-19.
Commenting on its findings, UKHospitality’s CEO, Kate Nicholls, said: “Today’s IFS report signposts possible financial gains for local authority budgets under 100% business rates retention schemes. It is important that any extra finances are used to support struggling businesses, and we will be making the case for much-needed investments to protect high streets and promote tourism growth.
“But the fundamental problem remains: the current business rates system urgently needs review and reform, as promised in the Government’s manifesto. The inequitable, disproportionate burden for hospitality businesses – while digital companies all too often escape business rates altogether – means that hospitality operators, including many small businesses, are facing potentially disastrous rates bills.”