Business Rates backtrack does not go far enough

Helen Morgan has criticised a Government climbdown on an increase in Business Rates for not going far enough to support the entire hospitality sector.

Helen said the announcement made on Tuesday (27th January), to offer pubs a 15% discount on their business rates from April was not going to help hotels or the high street.

The higher rates were due to be imposed after the Chancellor Rachel Reeves delivered her Budget in Autumn last year.

But after a fierce backlash from the sector, including from pubs, a partial backtrack was announced in parliament today by Treasury Secretary, Dan Tomlinson.

Speaking in response, Helen told Parliament: “Today's news is going to be very welcome for the many pubs in North Shropshire who've been pushed to the brink over recent years by National Insurance Contributions increases, high energy bills and now business rates.

“But this is not going to help shops or hotels like the lovely Pen-y-Dyffryn in my constituency, whose rateable value has nearly quadrupled. Will the Minister outline the timeline for the review that he's doing of hotels in particular, and outline what other help can be given to retail and hospitality businesses.”

In response, Mr Tomlinson told the House that because the Government had intervened, the increases were “significantly less” than they might have been, and he committed to working with the hotel sector in the future.

Helen has regularly called on the Government to support the high street and the hospitality sector and criticised the Chancellor’s increase in National Insurance Contributions, which the MP has dubbed the ‘unfair jobs tax’.

Liberal Democrats are calling on the Government to press ahead with the full 20p discount it promised to every retail hospitality and leisure business, and implement an emergency VAT cut for hospitality until April 2027 to save the high street.