Tourism leaders in Devon and Cornwall are lamenting a perceived snub after Prime Minister Rishi Sunak's (not Andy Burnham) business rate cuts – unveiled last week – excluded hotels, restaurants, and holiday parks. The omission has sparked heated debate about the impact of these rates on the region's fragile economy.
Patrick Langmaid, owner of Mother Ivey's Bay Holiday Park in Cornwall and chairman of the Cornwall Holiday Parks and Residential Parks Association, highlighted the concerns shared by many in the industry. 'We're not just fighting for a handout – we need a fundamental change to the system,' he said. Langmaid argued that hospitality should be viewed as an interconnected sector, where support for one area inevitably benefits others.
The stark contrast in treatment is underscored by recent rate recalculations. Hotels have faced average rises of 110% over three years, while pubs experienced a 76% hike. Notably, pubs have already received two rounds of relief – an initial 15% cut followed by the new 20% reduction – whereas hotels and restaurants remain without specific support measures.
Hugh and Steve Ridgway, owners of the St Moritz Hotel and Cowshed Spa in Trebetherick, echoed these sentiments in a letter to the Prime Minister. They metaphorically described hotels as 'the load-bearing Victoria sponge' – a crucial component of the region's tourism economy – urging immediate action to extend reduced rates to hotels.
Trade body UK Hospitality expressed cautious optimism, viewing the announcement as a positive step towards broader sector support. Noah Law, Labour MP for St Austell and Newquay, echoed this sentiment on BBC Radio Cornwall, describing it as 'the start of a shift' in government policy. The Treasury estimates that the cuts will save the average pub around £1,100 annually at an estimated cost to public finances of £100 million.