Hilton and Butlins have been left fuming after Andy Burnham’s pledge to slash business rates for pubs, clubs and music venues explicitly excluded hotels and resorts from the relief. The prime minister announced a 20% cut to business rates for pubs, social clubs and live music venues in England from next April, calling it a “first step” to help the industry. But the snub has infuriated major hospitality chains that have been “unfairly ignored by successive government interventions”, according to Stephen Cassidy, senior vice president of Hilton. A Butlins spokesperson echoed the sentiment, saying the resort chain had been overlooked despite contributing to local communities.
Burnham, speaking from a pub in Essex, said pubs in particular “need to know that the cavalry is coming”. The cut is expected to benefit almost 32,000 venues, saving firms around £1,100 next year at a cost of £100m. The funding will come from a review of tax relief on firms such as vape shops that “do not make a positive contribution to local communities”, the government said.
“Pubs get 20% business rates cut but hotels left out, sparking anger from Hilton and Butlins.”
Some hospitality firms welcomed the move, but others questioned why hotels and restaurants were not included. UK Hospitality’s chief executive Allen Simpson called the plan “a good start” but added: “Neither hotels nor restaurants have had the help they need.” The Night Time Industries Association said it welcomed the announcement but sought clarity on eligibility, with chief executive Mike Kill adding: “We look forward to working constructively with government to ensure nightclubs are fully recognised within these measures.” Nightclubs are not covered by the cut, though the Treasury said they already benefit from permanently lower business rates multipliers and a £4.3bn support package.
The government estimates the relief will apply to almost 32,000 venues, with eligibility details to be announced at Chancellor John Healey’s first Budget in the autumn. The cut does not apply to the “very largest” live music venues, and definitions are expected to mirror existing guidance that excludes nightclubs. Burnham’s third policy announcement since entering No 10 leaves the wider hospitality sector waiting to see if the Budget will offer a “proper solution” for what Simpson called “the most overtaxed sector in the economy”.