UKHospitality's Chief Executive has responded to the publication of the latest inflation figures released today by the ONS.
Britain’s inflation rate rose to a 40-year high of 10.1% in September, as soaring food costs more than offset price declines at petrol pumps.
Kate Nicholls said, “The sky-high levels of inflation we’re seeing are continuing to put the hospitality sector under huge pressure and businesses across the country will be fighting to survive the winter.
“With the September inflation figures traditionally being used to set tax changes and rates for the following year, there is a real risk that hospitality businesses will face an enormous cliff-edge in April if these numbers are used to hike the business rates tax level. Such an increase at the same time as the risk of business rates reliefs ending could prove fatal for many.
'With hospitality inflation contributing heavily to the overall inflation rate, we now risk an inflationary spiral where our higher costs lead to higher taxes which lead to even higher prices.'
Kate concluded, “As well as needing to reform the entire business rates system in the long-term, it’s now absolutely critical that business rates relief is extended for vulnerable sectors such as hospitality and that downward revaluations are realised in full.'