Tourism leaders in Devon and Cornwall say hotels, restaurants and holiday parks have been “overlooked” after Andy Burnham announced a 20% business rates cut for pubs, clubs and music venues across England from April. The plan does not include hotels, restaurants or holiday parks, prompting criticism from parts of the hospitality sector.
The prime minister called the move a “first step” to help businesses, but figures in the south-west said support should extend across hospitality as a whole.
Why are tourism leaders unhappy?
Tourism leaders say the latest rates relief leaves out large parts of the sector that are also under pressure from rising costs. Patrick Langmaid, from Mother Ivey's Bay Holiday Park in Cornwall, said hospitality should be considered as a whole, adding: “We've been overlooked.”
Langmaid, who is also chairman of Cornwall's Holiday Parks and Residential Parks Association, said the 300 businesses he helped represent would be “horrified” to not be included in the measures.
“We are delighted that other sectors are getting support but why not us?” he said.
“I don't want to take away from pubs, clubs and live music venues because the whole of hospitality needs support around rates.”
He added: “I feel that hotels, restaurants and holiday parks have been thrown under the bus.”
What did hotel owners say?
Hugh and Steve Ridgway, owners of the St Moritz Hotel and Cowshed Spa in Trebetherick, said hotels were not “the icing on the hospitality cake” but the “load-bearing Victoria sponge”.
In an open letter to the prime minister, they wrote: “Whilst you're on fire with common sense announcements like this, can we please politely prod on the glaring fact that you need to add hotels to the reduced rates list immediately.”
Burnham has said the move is a first step for businesses.
When business rates were recalculated in April, pubs faced an average rise of 76% over the next three years. Hotels, meanwhile, were facing a 110% rise.
Pubs have now had two rounds of relief - a 15% cut in April and a further 20% today - while hotels and restaurants have had nothing.
Allen Simpson, from trade body UK Hospitality, said he felt “sure solutions for everybody else are coming”.
“This is an early start. I think it shows a direction of travel and let's hope it continues.”
Burnham described the plan as a “first step” to help businesses and said pubs in particular “need to know that the cavalry is coming”.
How are pub owners reacting in the south-west?
Pub owners in the south-west of England were optimistic after the announcement but feared the measures may not go far enough.
Speaking to BBC Radio Cornwall, Sam Colton, who runs the Turtley Corn Mill pub near South Brent in Devon, said: “I think it's really interesting, it's very optimistic and it's certainly making noises in the right direction.”
Cornish publican Amy, meanwhile, believes the latest business rate cuts are a drop in the ocean.
“We are all hospitality businesses, why should we be entitled to it when cafes restaurant and everything else are not?”
Lou Tresidder, who runs the Driftwood Spars Hotel in St Agnes, also welcomed the cuts, but warned: “The whole industry is struggling. It's really hard to survive.”
She said the business had seen no growth in turnover over the past two years, despite facing a significant increase in costs.
“It's a lovely gesture, but it's not really going to make much impact to the survival of pubs around the UK, I don't think.”
What happened to Lou Rose’s cafe?
Lou Rose had to close her community-focused cafe in Truro in April because the business simply “couldn't function any further”.
“We weren't able to pay ourselves after paying the staff costs, the increase in utility bills, the landlord put up his rent,” she said.
“Business rates were £1,000 a month. We were paying exactly the same as Starbucks, Costa and Nero and the VAT on top of that was really tricky.”
How much will the plan save and who will pay?
Burnham's plan, which aims to save the average pub about £1,100 a year, is expected to cost £100 million.
It is set to be funded by a review of tax relief on firms such as vape shops which “do not make a positive contribution to local communities”, the government said.
Speaking to BBC Radio Cornwall, Noah Law, Labour MP for St Austell and Newquay, said the move “has got to be the start of a broader shift on what we do for the hospitality sector”.
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Holiday and Residential Parks Association
