Key facts
- Andy Burnham announced a £100 million business rates reduction for pubs, clubs, and music venues.
- The relief offers a 20% cut in business rates, estimated to save businesses around £1,000 annually.
- Hilton and Butlins criticized the exclusion of hotels and resorts from the business rates relief.
- Hotels face significant increases in business rates, with an average bill expected to rise by 115% by 2029.
- Industry groups are also campaigning against the overnight visitor levy, or 'tourist tax'.
Prime Minister Andy Burnham announced a £100 million initiative to reduce business rates by 20% for pubs, clubs, and live music venues. However, major hospitality players like Hilton and Butlins have expressed strong dissatisfaction, arguing that hotels and resorts have been unfairly overlooked. Stephen Cassidy, Senior Vice President of Hilton UK and Ireland, stated that hotels have been disproportionately impacted by business rates changes and other taxes, contributing significantly to job creation and economic growth. According to UK Hospitality, the average hotel faced an additional £28,900 in business rates after Rachel Reeves's Autumn Budget, with projections indicating a 115% increase by 2029. Jon Hendry Pickup, CEO of Butlin's, criticized the exclusion of large operators, emphasizing their role as major employers and contributors to local economies. Allen Simpson of UK Hospitality echoed these sentiments, noting that restaurants and hotels are struggling equally and that the relief for pubs, clubs, and music venues only covers about a fifth of hospitality jobs. Additionally, Butlins and other trade bodies are opposing the government's overnight visitor levy, or 'tourist tax', which recently came into effect in Edinburgh.