25/04/2019.
Hospitality sector hit by business rates.
New statistics indicate that the revaluation of business rates has been as damaging for businesses in the British hospitality industry as the 2009 financial crash. According to data from Colliers International, 15 major chains in the restaurant and retail sectors have gone into administration since April 2017, compared to the 16 similar companies that went into administration in 2008-09.
For pub businesses the situation appears similarly bleak, with research from the Campaign for Real Ale indicating that high business rates are forcing publicans to lay off staff and increase prices in order to alleviate the pressure from rising tax burdens. In one poll of 650 licensees, three out of four respondents reported feeling that the rates system is unfair to pubs, with establishments affected by an array of taxes in the form of beer duty, VAT, and business rates. Mike Wood, Chair of the All Party Parliamentary Beer Group, has called for “fundamental reform” of the business rates system, noting earlier this year: “The relief announced in the Budget last autumn was enormously helpful, with about 80% of pubs benefiting, but they are still hugely overtaxed. Despite only making up about 0.5% of total business turnover, our pubs represent nearly 3% of all business rate payments.”
London hotels hit by rising property taxes
With rates continuing to have an impact on the health of companies across the hospitality sector, analysts note that hotel businesses in London are set to be significantly affected due to a renewed increase in property taxes.
Business rate analysts note that 93 hotels in London have been charged with a combined total rates bill of £12.2m for this year – two and a half times more than the amount charged in 2016. The steepest increase was seen by the Four Seasons in Tower Hill, which saw rates rise from £176,000 in 2016-17 to £570,250 in 2019-20. The Marriot in Kensington meanwhile saw its levy rise to over £1m for this year, up more than double from its £414,500 costs in 2016-17.
Outlook for businesses “extremely worrying”
The rise of business rates in addition to growing rent and wage costs, rising inflation and low consumer confidence has led leaders from across the UK hospitality industry to warn of an industry “in crisis.” Speaking on the research, Colliers’ John Webber commented: “The fact that 10 sizeable retailers or restaurant groups have gone into administration or CVA since the beginning of the year is extremely worrying,” adding that the firm’s data does not even account for small businesses.
Are you also having cash flow difficulties?
If you are struggling like the above hospitality companies, rather than giving in to insolvency, could you boost your cash flow by putting credit management in place?
What is more, do you realise you may have a windfall of cash, buried within your business’ historic records, just waiting to be activated?
If you traded with other businesses and were often paid late then you could be entitled to significant compensation.
Under this little known and underused legislation your business could be due huge amounts in compensation that you didn’t even know about.
That compensation could be the boost to your cashflow that your business is looking for.
How can CPA help?
CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.
We do the work, you receive the cash.
If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
CPA is passionate about late payment
The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.
We are passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.
If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.
As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.
Under little used legislation, you are entitled to compensation for those late payments.
Now you can boost your own cash-flow.
CPA can help unearth the those hidden treasures.
We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.
Yes, CPA can help you boost your business cashflow.
Don’t let your bankers control you, contact CPA today.
About CPA
The Credit Protection Association can help!
Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.
At the Credit Protection Association, we provide first class commercial credit information that can help you avoid being over extended to commercial customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your business customers.
We regularly publish lists of the latest company insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
CPA can help you identify the risks.
Why use a third party collector?
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Over the years we have collected billions in overdue invoices for our customers. Whether your late invoices are owed by businesses or consumers, we can help get you paid.
Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.
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For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
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