Market

Retail and hospitality sectors approach £2.7bn cliff edge


Retail, leisure and hospitality firms across England are facing a £2.66billion ‘cliff edge’ when a pandemic-era tax break ends next April, experts warned.

Shops, pubs, hotels, restaurants, cinemas and gyms will be among those to be hit when a 75 per cent discount on business rates finishes. 

Data analysis by real estate consultancy Altus Group showed 252,414 eligible properties receive the relief up to a cap of £110,000 per business. 

The annual cost of the scheme totals £2.41billion – a sum that will now be borne by those firms. 

At the same time, headline business rates will go up in line with inflation, adding £250m to rates bills for the sector, according to Altus. That will leave firms facing a ‘double whammy’ totalling £2.66billion, it calculated. 

Hit hard: Retail, leisure and hospitality firms across England are facing a £2.66billion 'cliff edge'

Hit hard: Retail, leisure and hospitality firms across England are facing a £2.66billion ‘cliff edge’

Alex Probyn, at Altus Group, said: ‘The Chancellor must prevent a cliff edge for the retail, hospitality and leisure sectors at her upcoming Budget.’

Probyn said Reeves must ‘lower the burden already placed on our high streets’.

DIY INVESTING PLATFORMS

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

Get £200 back in trading fees

Saxo

Get £200 back in trading fees

Saxo

Get £200 back in trading fees

Free dealing and no account fee

Trading 212

Free dealing and no account fee

Trading 212

Free dealing and no account fee

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.

Compare the best investing account for you





READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.