Hospitality business urged to prepare for new business rates payments in July 2021
Trade association UKHospitality yesterday released an unwelcome reminder that the business rates payment ‘holiday’ for hospitality companies ends this month, with the new scheme starting on July 1st and bills expected to land on doormats in the coming weeks.
The new scheme, announced by the Chancellor in March’s Budget, provides a 66% discount on rates payments for the remainder of the year, following the end of the no-payments holiday period, however this relief is capped for businesses with an annual rates bill of over £8 million.
UKHospitality CEO Kate Nicholls said: “The new rates payments come into effect just days after trading restrictions are due to be lifted and will put a major economic drag on the businesses affected and risk the jobs that they support. Local authorities have the power to offer discretionary discounts or adjusted payment plans to those businesses facing hardship and we urge them to enter into constructive dialogue with those seeking support.
Presumably the resumption of business rates payments was timed with a return to unrestricted trading on June 21st in mind, begging the question, should stage 4 of the reopening roadmap be postponed due to rising Covid-19 case rates, will the business rates holiday be extended? We probably all know the answer to that.
Nicholls went on to say: “This reinforces why it is crucial for the Government to deliver on its commitment to dropping Covid restrictions and measures on 21 June. The hospitality sector stands ready to play its part in helping to create jobs and reinvigorate local communities, but that will only be possible if our businesses return to viability at the earliest opportunity.”