What's happened
UK pubs and restaurants are warning of potential closures and job cuts if Chancellor Rachel Reeves' upcoming budget raises taxes and ends Covid-era business rates relief. The hospitality sector is particularly vulnerable, with many businesses fearing they cannot survive a quadrupling of their tax bills.
Why it matters
What the papers say
According to Jasper Jolly in The Guardian, the hospitality sector is bracing for a tough winter, with many businesses warning that they could close if tax relief ends. The British Beer and Pub Association echoed these concerns, stating that 'many cash-strapped pubs... would simply be unable to survive their rates bills quadrupling.' Meanwhile, David McDowall from Stonegate Group highlighted that landlords currently make only 12p profit per pint, emphasizing the precarious financial situation of many pubs. The BBC reported that the hospitality industry has faced numerous challenges, including high inflation and energy costs, which compound the potential impact of increased business rates. This sentiment is echoed by industry leaders who are calling for urgent government action to reform business rates and support the sector.
How we got here
The UK hospitality sector has been recovering from the impacts of the Covid-19 pandemic, during which business rates relief was introduced. This relief, providing significant discounts, is set to end in April 2024, raising concerns among industry leaders about the sustainability of many establishments.
Common question
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northÂwestern coast of the European mainland.
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