Stirrups Hotel in Maiden's Green, Bracknell, has seen its annual business rates leap from £98,000 to £245,000 after changes announced in last October's Budget, director Jason McKelvie says - a rise he warns will put serious strain on the hotel and the wider hospitality sector.
The hotel can only appeal the new bill from the start of the tax year in April, and Mr McKelvie expects the appeal to take about six months because of a backlog.
He said: "We employ 29 full time, six part time and then plenty of casual workers – students - hospitality is a huge employer in the UK but our industry has seemed to be unduly targeted on taxes at the moment."
Stirrups is getting transitional relief for now, but Mr McKelvie warned that within three years the business will face an extra £7,000 a month over a ten-month period compared with last year. He called the increase a "huge hit", and said it comes on top of inflation, rising energy costs and higher wages. He also criticised the tax burden on the sector, saying VAT is higher than in many European countries and that hospitality may be an easy target because it can't move.
Councillor Gareth Barnard raised Stirrups during his 'State of the Borough' address on May 13. He said: "Take a well-known hospitality business, Stirrups. Their business rates have gone up from £98,000 to a shocking £245,000 per year, with an over 18 month delay to appeal them."
Cllr Tony Virgo, a regular customer, told the LDRS: "I was absolutely astonished at the increase that Stirrups has to pay.
“The whole thing handing over you whilst it goes to appeal, which can take up to a year as I understand it -it's like holding a gun to your head. The number of people going on holiday in the UK has decreased by 10 per cent. We should be helping businesses, not lumbering them with a huge tax bill. I know this is a decision made in central government, but it will affect the local community because they won't be spending the money on investment or staff."
In the same speech, Cllr Barnard warned other local firms are also hit. He said: "Just talk to Sibit or Doodles in Crowthorne, who in the latter case have paid in the last two months the same business rates as they did for the whole of last year."
Ted O'Neill, Local Democracy Reporter
