Business rate hikes 'constant punch in the face'

The landlord of The George and Dragon pub in Speldhurst says a 93% increase in business rates and other rising costs in hospitality feel like "constant punches to the face" from the government.

Matthew Sankey, who took over the Kent pub last year, says relentless cost increases are pushing the hospitality sector to breaking point.

Sankey is calling for "intelligent support" from the government, warning that businesses can only pass so much of the rise in running costs on to customers through price increases.

A Treasury spokesperson said the Budget included £4.3bn of support for pubs, restaurants and cafés.

Speaking to Politics South East, Sankey, who owns a number of hospitality venues in Kent, said: "Support for our industry needs to come from everywhere, it obviously has to come from the customer but we also need intelligent support from the administration, from the government.

"The constant increasing of costs is making it unviable."

A spokesperson for the Treasury said that it was protecting pubs, restaurants and cafes with its £4.3bn support package.

"Without this support, pubs would face a 45% increase in the total bills they pay next year.

"Because of the support we've put in place, we've got that down to just 4%," they said.

"This comes on top of our efforts to ease licensing to help more venues offer pavement drinks and put on one-off events, maintaining our cut to alcohol duty on draught pints, and capping corporation tax."

Despite those claims, UK Hospitality says unless changed, business rates hikes could cost each business an extra £32,000 over three years.

Politics South East is on BBC1 at 10:00 GMT on Sunday, then on the BBC iPlayer.

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