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[European Times, January 15, Shen Xin reporting] British Chancellor of the Exchequer Rachel Reeves has not ruled out the possibility of expanding the scope of support for the business tax rate in the catering industry. Previously, she had promised to assist bar owners, but in response to the widespread calls within the industry, she is open to the idea of extending the support to a wider range of catering service enterprises.

According to BBC reports, recently the British Ministry of Finance intends to announce further assistance measures for bars. Like all catering service enterprises, the business tax rate reduction policy for the bar industry during the pandemic will expire in April, while the taxation of their business premises will increase significantly at the same time.

Initially, Reeves hinted that she was not considering extending the support measures for bars to other areas of the catering industry. But later, Reeves said, "We are in close communication with the catering industry." Ministry of Finance officials disclosed that the special support plan for bars will be announced in the coming days, but they have not ruled out the possibility of providing additional tax relief to a wider range of catering service enterprises. Opposition party members and industry organizations have been pressuring to extend the additional subsidies to all enterprises in the catering service industry, including hotels and restaurants.

Reeves said, "Although we have arranged 4.3 billion pounds to alleviate the transitional adjustment of the tax rate for the next three years, as the reduction policy ends, we must ensure the implementation of support measures in a balanced way, especially focusing on the difficulties of bars and the catering service industry."

The 4.3 billion pounds will be used to alleviate the impact of rising taxes over the next three years. According to calculations, without this measure, the business tax bill for the bar industry will soar by 76% in three years, and for the hotel industry, the increase will be even higher at 115%.

Catering Industry Association's Kate Nichols said that the Chancellor's statement brings hope to non-bar enterprises facing a significant increase in tax rates, which is encouraging. She said, "I'm glad to see the government paying attention to the wider catering industry and discussing support policies beyond bars."

Reeves admitted that she is particularly concerned about the impact of the business tax rate on bars, but hinted that she has no plans to expand the support measures to other areas of the catering industry. When asked about what support other small catering service enterprises will receive, she responded, "The public can understand that the industry most affected and the most worrying is the bar industry. Some of the smallest enterprises, especially some cafes, do not even need to pay business taxes due to their turnover not reaching the threshold." Business organizations warned that with the end of the pandemic relief policies in April and the revaluation of business premises taxation, they will find it difficult to bear the increased tax burden.