John McMahon on proposed business rates reform for pubs, hospitality and high street retailers

Prime Minister-in-waiting Andy Burnham has proposed business rates reform for pubs, hospitality businesses and high street retailers.

The proposals include a suggested 20% cut to business rates for pubs and bars, with the cost partly offset by higher rates on warehouses and large out-of-town developments. Burnham has also indicated support for raising the threshold at which small business rate relief applies from £12,000 to £18,000.

John McMahon, who has advised hospitality and retail businesses for almost three decades, says meaningful reform could play an important role in restoring confidence, encouraging investment and supporting the long-term future of town and city centres.

“Having advised hospitality and retail businesses for almost three decades, I have seen first hand the immense pressures facing pubs, restaurants, cafés and independent retailers. They are resilient businesses, but many continue to battle rising costs, increasing regulation, higher employment expenses and an outdated system of business taxation.

“That is why Andy Burnham’s commitment to overhaul the tax burden affecting pubs and high streets is a welcome and positive development. Our town and city centres rely upon thriving hospitality and retail sectors, not only as drivers of economic activity, but as places where communities meet, socialise and prosper.

“A fairer and more balanced tax system has the potential to unlock investment, encourage business expansion and restore confidence to operators who have faced years of uncertainty. It would also make it more attractive for entrepreneurs to establish new businesses and breathe fresh life into high streets that have struggled in recent years.

“From a legal and commercial perspective, the message is clear. If Government is serious about regenerating our town centres, supporting employment and encouraging private investment, then reforming the tax environment for hospitality and retail businesses is an essential part of the solution.

“The hospitality industry has repeatedly demonstrated its resilience. It now deserves a taxation framework that recognises its economic importance, rewards investment and gives businesses the confidence to plan for the future.

“For Northern Ireland, in particular where hospitality and tourism contribute significantly to our economy and support thousands of jobs, meaningful reform could be transformational for businesses, employees and local communities alike.”

John’s comments featured in Caterer Licensee and Talking Retail.