Prime Accountants responds to the £210m pledge to regenerate high streets amidst the ‘punishing’ tax burden
Mere weeks ago, Andy Burnham announced a £210m cash injection into high streets up and down England to transform derelict buildings into community hubs.
Days later, a study was released by the British Retail Consortium, focusing on the fact that hospitality and retail sectors pay more tax than any other UK sector.
Leading Midlands-based accountancy firm Prime has offered its insight into what hospitality businesses need to do amidst the scheme and the ever-growing tax gap.
Paislei Goodley, a director at Prime, said: “The plans announced are to add community hubs, shops and cafes to the high streets across England.
“While we see many communities rejoicing at the concept of having more and more community areas in otherwise derelict high streets, the business owners that are expected to fill these high streets are filled with dread.”
The study found that hospitality businesses pay a whopping 82p in tax for every £1 that they make, while retail businesses pay 72p.
These are the two highest-taxed sectors in the UK, with banks only paying 40p per £1 in comparison.
Paislei said: “Putting money into high streets is futile if the businesses that are expected to populate them are punished so deeply by the tax burden.
“If it is not VAT or business rates, then high street businesses have to worry about National Insurance and Corporation tax.
“Yet, there are few reliefs that are available to the hospitality sector even though they are supposed to be the backbone of Britain.”
A study conducted by UK Hospitality in 2025 showed that 62 hospitality venues closed per month, that is, two a day.
Paislei said: “We are pleading with individuals within the industry to get in touch with an accountant that specialises in hospitality, like Prime.
“An accountant will allow you to identify and use all available allowances, choose the right business structure and improve cashflow in light of the tax burden.
“We understand that it may seem like another expense, but we’re here to help you make money by relinquishing the tax burden.”