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Industry Leaders Warn of Business Rates Crisis Ahead of Budget

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Industry leaders are sounding the alarm as the hospitality sector faces a potential crisis, with business rates set to quadruple after the current relief ends on March 31. This dramatic increase could cost the industry an additional £914 million, prompting urgent calls for reform from Chancellor Rachel Reeves in the upcoming budget.

A coalition of 170 hospitality business leaders, including executives from major pub chains like Greene King and JD Wetherspoon, as well as representatives from high street establishments such as Caffè Nero and IHG Hotels, have penned a letter to the chancellor advocating for immediate action. They are urging the government to implement a lower, permanent business rates multiplier specifically for the hospitality sector across all UK nations.

UKHospitality, the industry’s trade body, has emphasized that the upcoming budget represents the government’s “last chance” to avert a significant cost increase that could devastate the sector. Kate Nicholls, chief executive of UKHospitality, warned that without intervention, the sector may face more closures, leading to vacant high streets and a growing number of empty venues.

Impact of Business Rates on Growth

The hospitality industry, which encompasses pubs, restaurants, cafes, and hotels, has benefitted from business rates relief since it was introduced as part of the government’s pandemic response in 2020. However, with this relief set to expire in just over five months, there are mounting concerns regarding the long-term implications of a quadrupling tax burden.

The group of 170 hospitality leaders pointed out that the current cap on business rates relief has hindered expansion efforts, making many venues reluctant to open new locations due to high associated costs. This stifling effect on growth is exacerbated by the perception that business rates are disproportionately high compared to the economic activity generated by the sector.

“The current tax system discourages people from running high street businesses,” the group stated in their letter. “The government should be encouraging growth and investment, not making it harder for businesses to operate.”

Threat to High Streets and Local Economies

The looming threat to the hospitality sector comes at a time when the government is striving to rejuvenate high streets and foster local community investment. Nicholls argued that without meaningful changes to business rates, the government risks undermining its own growth objectives.

“Further closures will be detrimental to the government’s growth agenda and impede our sector’s ability to create vibrant places for people to live, work, and invest,” she said. “If we want to retain vital investment, job creation, and the regeneration of our high streets, the chancellor must introduce a lower level of business rates for hospitality in the budget.”

Other trade organizations, including the British Retail Consortium, have echoed these sentiments, asserting that high business rates contribute to an alarming wave of shop closures and job losses, inflicting both social and economic costs on high streets across the UK.

A Call for Fair Taxation

As the government navigates increasing fiscal pressures, the hospitality sector argues that rebalancing the tax burden could provide a viable solution. UKHospitality and other industry leaders believe the current system unfairly penalizes hospitality businesses, which pay a disproportionate share of business rates relative to their economic activity.

By reforming the business rates system, they argue, the government could support long-term investment in the sector, create jobs, and rejuvenate high streets. With the spring deadline approaching, the industry is urging Chancellor Reeves to take decisive action in the upcoming budget to avert a significant crisis in one of the UK’s most vital sectors.

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Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

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In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

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Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

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The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

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UK Government Reports Lower-Than-Expected Budget Surplus in January

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The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

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