Bournemouth-based Insolvency Practitioner Antony Batty & Company has welcomed the government’s temporary U-turn on business rate rises for pubs. But says the wider hospitality and retail sector still facing a ‘double whammy’ of rates and wage increases must remain ‘hypervigilant’ to protect themselves from insolvency.
Elaine Wilkins, Director explains: “The Chancellor’s decision for a temporary scale back of the proposed rate rises for pubs will be welcomed by many struggling businesses across the area.
“Calls for other hospitality and retail businesses to be included have not been granted and this could have wide-reaching repercussions for businesses owners and our already-struggling high streets.”
Every pub in England will get 15% off its new business rates bill and they will then be frozen for a further two years.
Industry leaders had been pressing for a 20p discount applied to the business rates multiplier for all hospitality and retail.
Elaine continues: “Retail has been under pressure since the economic downturn in 2018, with Covid and rises in online shopping, the cost of living and operating costs further compounding the issues.
“In 2024, the UK lost about 37 shops a day. Almost 13,500 retail stores closed for good – which was a rise of 28% on 2023. In 2025 thousands more shops closed their doors or restructured to take more of their business online.”
Major high street retailers such as WHSmith and Claire’s have been included in ever-growing list of casualties.
Budget retailer Poundland has also closed stores and even the charity shop sector has been hit, with Cancer Research UK announcing it will close 88 of its branches by May 2026.
Elaine adds: “As a result of these mounting pressures, many smaller retailers have become so-called ‘Zombie’ businesses – earning just enough to cover their operating costs and debt interest, but unable to repay their debt or invest in growth.
“This year will undoubtedly bring even more challenges to the hospitality and retail sectors, and we would urge all business owners to be hypervigilant when it comes to their finances.
“If you’re facing consistent cash flow problems, or are struggling to pay creditors on time, talk to an IP immediately.
“Insolvency Practitioners are there to anticipate areas of difficulty and guide owners through steps to protect their businesses. But the difference between saving a business and going through insolvency relies on alertness and planning.
“The earlier you seek advice, the more measures can be put in place and the greater the chance of saving the company.”