Chef Tom Kerridge has voiced serious concerns regarding the hospitality industry in light of dramatic business rate increases. He revealed that his establishment, The Coach, is facing a staggering 100% rise in its business rates, jumping from £50,500 to £106,000.
Tom Kerridge’s Remarks on Business Rate Hike
During a discussion with Business Secretary Peter Kyle, Kerridge was shown the new rateable values for his venues. He stated that the hospitality sector is “not in a good place,” highlighting the difficulties many businesses will face with this sudden financial strain.
Government Response and Ongoing Discussions
Kerridge’s meeting with Mr. Kyle followed previous concerns raised about how the increase in business rates, effective from April, could heavily impact pubs and restaurants. Discussions are ongoing at the government level regarding how to support the affected sectors.
- Peter Kyle’s acknowledgment of the situation.
- Kerridge’s emphasis on the pressures faced by many establishments.
- Continued negotiations between the Prime Minister and the hospitality industry.
The Prime Minister mentioned transitional relief measures and stated that further dialogue about potential support options, such as licensing adjustments, is in the pipeline.
Impact on Pubs and Future Changes
Several pubs have already begun to protest these business rate hikes, highlighting the urgency for reform. Labour MP Rachael Maskell expressed that without significant changes, high streets could face collapse. Her plea underscores the dire consequences of the current business rate system.
The Chancellor’s Autumn Budget revealed a planned overhaul of the business rates system, targeting reductions for retail, hospitality, and leisure sectors. This will be funded by increasing rates on larger commercial properties.
Financial Support for Hospitality Businesses
The government has put forth a £4.3 billion support package aimed at protecting pubs, restaurants, and cafes from excessive increases. Without this intervention, industry experts suggest a potential 45% rise in overall bills next year. Thanks to this package, Kerridge’s business may see a rise capped at around 15% instead.
The overall aim is to ease the financial burden on hospitality businesses while ensuring that lasting changes to the system are effectively implemented. Continued collaboration between the government and the hospitality sector remains crucial during this challenging period.
