Richmond upon Thames Council has passed a motion calling on the government to extend financial support to the borough's hospitality sector, arguing that cafes, independent restaurants, and small hotels are facing similar pressures to pubs but are not receiving comparable relief.
The motion, proposed by Councillor Gareth Roberts, highlighted the significant contribution of the hospitality sector to the local economy. While the council welcomed the government's recent U-turn on increasing business rates for pubs, concerns were raised that this support has not been extended to other vital parts of the sector.
Councillor Roberts stated, Council recognises the significant contribution made by the hospitality sector to the borough's economy. While Council welcomes the Government's U-turn over increasing business rates for pubs across the borough, Council remains concerned about the apparent lack of provision for other parts of the hospitality sector such as cafes, small hotels and independent restaurants.
He added that these businesses are the absolute lifeblood of our visitor economy to Richmond upon Thames.
The government's U-turn on business rates for pubs essentially freezes them in the short term, meaning many businesses will not see immediate increases. However, the benefit for most pubs from these changes is estimated to be around £1,650 per year, which some councillors feel is a drop in the ocean
when compared to rising costs from alcohol tax and national insurance contributions.
Councillor Phil Giesler, Lead Member for Business and Growth, supported the motion, emphasizing the need for fairness and consistency. He noted that hospitality businesses are being hit from multiple sides, including rising energy costs, national insurance contributions, and sudden reductions in COVID relief causing business rates to virtually double overnight.
Councillor Giesler also pointed out that NI increases thrust onto employers
are a significant burden.
Councillor Niki Crookdake, who seconded the motion, echoed these concerns, stating that the current business rate system and the Valuation Office Agency's approach have caused mayhem across sectors.
She called for a broader review of the business rate system to ensure consistency and clarity for businesses. The meeting highlighted that the Valuation Office Agency's current approach to business rate assessments for cafes, independent restaurants, and small hotels is based on arbitrary turnover estimates which don't seem grounded in reality,
leading to massive inconsistencies with how businesses are valued for their rates.
The council resolved to call on the government to recognise the plight of hospitality businesses across the borough and ensure that the recognition given to pubs is extended to similarly impacted businesses. Councillor Roberts suggested that a VAT cut for hospitality venues would be beneficial, helping to lower prices and encourage more people to visit regularly. Councillor Mansfield added that hospitality deserves consistent fair treatment and I urge members to support the motion.
Cafes, small hotels, and independent restaurants face many of the same pressures as pubs, including rising costs, staffing challenges, and uncertainty. Councillor Mansfield also noted that government energy support competitive energy tariffs are also locking out the hospitality industry.
The council's call for government action can be found within the broader discussions of the council meeting, detailed in the Public reports pack Tuesday 27-Jan-2026 19.00 Council.
