More than 2,000 hospitality businesses could close this year - six venues every day
Analysis by UK Hospitality suggests six venues will be forced to shut down every day, including 963 restaurants, 574 hotels, and 540 pubs, unless the government intervenes before April's revaluation.
The trade body forecasts that pubs face a 15pc rise in business rates bills from April, costing them an extra £1,400 in year one and £12,900 over three years, an increase of 76pc.
Meanwhile, the average hotel will see its rates bill rise by £28,900 next year, and by £205,200 over the next three years, up 115pc.
More than 2,000 hospitality businesses could close this year, UK Hospitality has warned (Image: Dominic Lipinski/PA Wire)
The government is poised to announce a £300m support package for pubs, but hospitality bosses argue that any financial help must also be offered to other businesses within the sector.
UK Hospitality is urging the government to increase the business rates discount for hospitality properties from 5p to 20p - the maximum permitted in law.
This is applied to what is known as the 'multiplier', which is used to calculate business rates.
Kate Nicholls, chairwoman of UK Hospitality, said without a "hospitality-wide solution" thousands of venues will close.
Kate Nicholls, chairwoman of UK Hospitality (Image: UK Hospitality)
“This is yet another blow to a hospitality sector that bears the highest tax burden in the economy, and has already been disproportionately burdened by increases to national insurance contributions, wages, energy and other inputs," she said.
“Hospitality is one of the nation’s biggest employers and has an incredible potential to grow and create jobs, but the money coming in the front door is simply not enough to offset the rocketing costs of doing business.
"All of this undermines the government’s objectives to grow the economy and help more people back into work."
The Treasury says it is "protecting pubs, restaurants and cafés with the budget’s £4.3bn support package, capping bill rises so a typical independent pub will pay around £4,800 less next year than they otherwise would have".
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