THE LEADING PUBLICATION FOR THE HOSPITALITY SECTOR & LICENSED TRADE issue 217
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Business Rate ReformHospitality VAT Cut… Manifesto Pledges as Race for No 10 Gets Under Way
The Bowden Group Hospitality Business Mentoring since 1989
As the country prepares for next months general election political parties have outlined their proposals for the hospitality with business rate reform being a main focus of attention. Industry leaders have continually lobbied for reform of the Britain’s outdated business rate system which has decimated the sector.
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According to the commercial real estate intelligence firm Altus Group, under 14 years of the Conservative government, revenue from business rates, the controversial devolved property tax, has risen by £9.48 billion a year up 49% from the £19.28 billion net yield during 2010/11 in England to £28.76 billion forecasted to be collected during this financial year. President of Property Tax at Altus Group, Alex Probyn, said “the average pub, restaurant, shop, office and factory are now paying £4,714 a year more in the
business rates tax than in 2010 through the cumulative effects of increasing the tax rates by inflation.”
YEAR-ON-YEAR INCREASE Probyn added “the choice to increase the standard rate of tax by 6.7% left firms in April left firms with the biggest year-on-year increase in the standard rate business rates since 1991 at an effective tax rate of 54.6%.” Labour have pledged to replace the business rates system in England, with a cap corporation tax at 25% for the entire parliament and retain permanent full expensing for capital investment and the annual investment allowance for small business.
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