Conservative Party today (Oct 6) has announced that it will introduce a "permanent 100 per cent business rates relief" for the Retail, Hospitality and Leisure (RHL) Sector as part of a plan to build a stronger economy.
About 250,000 businesses will benefit from the relief, delivering substantial savings that can then be reinvested in better premises, more staff and lower prices.
The tax relief will cost £4 billion a year and is funded from the £47 billion savings package announced by Shadow Chancellor Sir Mel Stride today.
The party added that these changes will bring businesses back to the high street, reinvigorating town centres and driving growth. The relief will allow businesses to pass savings onto consumers, meaning cheaper gym memberships, cheaper meals and cheaper pints for punters.
It will also help protect and create jobs in the hospitality sector, reversing the decline seen under Labour. 89,000 hospitality workers have lost their jobs since the Budget – more than half of all UK job losses.
This will particularly help young people, many of whom will be entering the workforce for the first time with jobs in the RHL sector.
RHL businesses have been particularly hard hit by Rachel Reeves’ £25 billion Jobs Tax, which has driven up the cost of staff significantly.
These businesses are also facing growing energy bills under Labour, adding further pressure in line for even higher costs thanks to Labour’s Unemployment Bill., stated the party.
Labour cut the 75 per cent relief on business rates for non-domestic properties, such as RHL sector businesses, at the Autumn Budget 2024, seeing bills rise by 140% this year. This left the average shop facing rates jumping from £3,589 to £8,613 per year, whilst pubs will see a new average bill of a staggering £9,451 per year.
That is why the Conservatives are announcing new action to safeguard the high street and deliver the right conditions for businesses and economic growth.
Sir Mel Stride MP, Shadow Chancellor, said, “Our high streets and town centres have been battered by Labour. The increases in the Jobs Tax and energy bills have hit them hard, and pubs and shops have seen their business rates bills more than double.
"We want to see high streets thriving again. Pubs are vital centres of community life, but they are closing on a huge scale.
“We will take decisive action to save small businesses and revive our high streets, lifting a quarter of a million shops and pubs out of business rates altogether.”
“Rachel Reeves claims to care, but her actions speak louder than words, and businesses have been left reeling as the Chancellor cut the rates relief put in place by the Conservatives, and plans to abolish it altogether next year.”
Andrew Griffith MP, Shadow Business and Trade Secretary, said, "Labour do not understand business. That much is obvious from their disastrous business tax grab.
“No sector has been hit harder by Rachel Reeves than hospitality – and we all feel the knock-on effects in higher prices, pub and restaurant closures, and empty high streets.
“Our 100 per cent business rates relief will bring an enormous boost to struggling hospitality venues decimated by Labour and help to reinvigorate our town centres.
“Unlike Labour, the Conservatives are on the side of small businesses, which are key to delivering a stronger economy.”