Blackpool's hospitality businesses facing financial cliff edge in April

Blackpool South MP Chris Webb has written to Chancellor Rachel Reeves, reports Shelagh Parkinson

Queen Street in Blackpool

Pubs, restaurants  and guest-houses in Blackpool are facing a ‘cliff edge’ if business rates relief runs out in April next year as currently expected.

Many operators could see their bills for business rates quadruple – and now calls are being made for the scheme to be extended by the government.

Blackpool South MP Chris Webb has written to Chancellor Rachel Reeves in his capacity as chair of the All Party Parliamentary Group for Hospitality and Tourism.

The group is  backing calls for a new, lower, permanent and universal business rates  multiplier for the hospitality sector.

Mr Webb said: “Businesses in Blackpool are facing a cliff edge in April when business rates relief is set to end.

“From the pandemic to the cost-of-living crisis and with the impact of soaring energy costs, the hospitality sector has faced significant challenges in recent years. It is vital that we do all we can to support them now.

“I know from my own experiences working in hospitality businesses across Blackpool they are the beating heart of coastal towns – creating jobs, generating revenue and bringing communities together.

“It is wrong to make these businesses – which contribute so much – pay more than their fair share. We need to see business rates reform to ease the burden on high streets and ensure Blackpool that businesses can thrive.”

Robert Wynne, whose businesses in Blackpool include the West Coast Rock Cafe and the Rose and Crown, also warned many operators in the resort would struggle.

He said: “For the last two years hospitality businesses have received 75 per cent rates relief. Also a lot of the very small micro businesses pay nothing at all as they fall under the limit to pay.

“Business rates going back to their normal level would probably make many hospitality owners give up the difficult struggle and that could happen very quickly. Probably within weeks of the budget.”

Rates relief for the hospitality sector was introduced in 2020 in response to the Covid pandemic when businesses were forced to close. It means operators in England can claim 75 per cent relief on business rates,  up to a maximum of £110,000 per business per billing year.

The scheme was extended until April next year by the previous Chancellor Jeremy Hunt under the Conservative government.