Keir Starmer issued tax warning ahead of key Budget

Keir Starmer needs to stop the hospitality sector from being "taxed out", an industry boss has warned. It comes as almost half of Britons believe their local high street is worse than it was a year ago, a poll of 5,000 people for Hospitality UK found.

Some 74% of the public believe that hospitality needs and deserves more support from the Government. Allen Simpson, chief Executive of UKHospitality, said: "These are really worrying statistics. It's clear that many of our communities, outside of big cities, feel that they are being left behind. That's unacceptable.

"We should not be faced with the situation where our towns, suburbs and villages feel that their high streets are in decline. It affects our sense of local pride and place, and has wider implications for our communities and local economies. This needs urgent action, and it's no coincidence that this is happening at the same time as hospitality businesses are being taxed out.

"Relentless tax and cost increases are forcing high street and community businesses to use all their available cash to pay the bills. They simply don't have the means to invest and grow, which impacts us all."

He added: "I hope these figures act as a wake-up call and that we get serious about supporting hospitality to regenerate and improve our high streets. The potential is there, but the Government needs to stop the sector being taxed out first."

An increase to the minimum wage, which came in this April, means that bosses have had to pay workers more in an environment where other costs, such as ingredients and energy bills, are also rising.

Employers are also now paying higher National Insurance contributions, meaning it costs more to employ someone.

These higher business costs coincide with the rising cost of living, which means people are going out to eat less to save on costs, lowering sales and profits for leisure industries.

Hospitality UK has demanded that Chancellor Rachel Reeves implement the maximum possible business rates discount for all hospitality properties under £500,000 rateable value.

They also called for a zero rate surcharge for properties above that rateable value, which will level the playing field for the high street, reduce costs and remove barriers to investment.

Mr Simpson said: "One of the major barriers to high street investment and regeneration is the outdated business rates system. Bricks and mortar businesses, like our pubs, restaurants, hotels and cafes, have for decades paid far more than their fair share and it's time to level the playing field.

"It's positive that the Government has committed to do just that and reform the business rates system. Now it needs to provide the maximum possible discount for all hospitality properties under £500,000 rateable value, alongside a zero rate surcharge for properties above that rateable value. This is the only one way that hospitality businesses will see lower rates bills."

Job losses in restaurants, bars, pubs and hotels total around 89,000 since last October, according to UKHospitality analysis of Office for National Statistics data from August.

A Government spokesman said: "Pubs, cafes and restaurants are vital to local communities, that's why we're cutting licensing costs, lowering their business rates and helping more hospitality businesses offer pavement drinks and al fresco dining, on top of cutting duty on draught pints and capping Corporation Tax."