Will new government proposals to slash red tape on bars and restaurants help rejuvenate UK high streets?
The government announced proposals to ‘slash red tape’ for the hospitality industry. The proposals include overhauling planning and licencing rules to make it easier for hospitality businesses to set up on UK high streets.
Among the proposed changes, the government will create new ‘hospitality zones’ with fast-tracked permissions for pubs, bars and outdoor dining.
Martin Jones, partner at UHY Hacker Young says: “It’s high time the government intervened to help rejuvenate the UK’s high streets. High street hospitality venues are facing the ruinous combination of spiralling overheads and reduced footfall.”
“The proposals may succeed in encouraging new venues to open, but do little to improve the situation for the UK’s struggling pubs. The government’s proposals simply do not go far enough.”
“The government haven’t committed to reviewing alcohol duties or business rates – measures that would have a far greater impact. Small businesses will appreciate reduced red tape, but their priority is protecting their margins so they can meet their payroll obligations.”
The hospitality industry is also facing cost pressures following the increase in Employers’ National Insurance Contributions from April 6, as well as facing a reduction in rates relief down to 40% in 2025/26 compared to 75% in 2024/25.
“Another major issue any high street plans face is pushback from local residents complaining about noise. It’s positive to see the government persevering with the initiative nonetheless.”
Jones highlights the Build Back Better High Streets campaign in 2021 under the previous government which failed to substantially improve the situation for the hospitality sector.
“The previous government also tried to inject new life into high streets and made remarkably little impact. In fact the situation for high street pubs and bars has markedly worsened in the past few years.”
“The current government is also being deliberately vague with the timeframe for these reforms – it’s unclear if and when they will materialise.”