In what can only be described as a masterclass in finding new ways to separate you from your money, the government has launched a review into how business rates are calculated for pubs and hotels. Translation: someone in Westminster looked at the hospitality industry, noticed people were still managing to afford a night out, and decided that was a problem worth solving.
The review of how rates work in England and Wales could lead to “reform of the system,” which in government-speak means “we found a loophole where businesses were not paying enough.” Because apparently, the current system—where pub landlords already balance razor-thin margins against rising wages, energy costs, and the simple fact that fewer people want to go out anymore—was leaving money on the table.
Here is what this actually means for you: the pleasant gastropub where you meet friends on a Friday, or the hotel where you take your family for a weekend away, operates on margins so tight that a sudden rates increase does not get absorbed by the owner’s secret stash. It gets passed on to you. Your pint gets more expensive. Your room gets more expensive. The business either raises prices or closes, and often both.
The cynical part is that this review exists because someone noticed hospitality businesses were still standing. In government logic, that means there is room to tax them harder. It is the economic equivalent of spotting someone with a smile on their face and immediately assuming they are not paying enough.
So yes, enjoy your local while the rates are still what they are. The review is coming, and when it concludes, your bill will reflect its findings.