In response, UKHospitality chief executive, Kate Nicholls, said: “The IFS report signposts possible financial gains for local authority budgets under 100% business rates retention schemes.
“It is important that any extra finances are used to support struggling businesses, and we will be making the case for much-needed investments to protect high streets and promote tourism growth.
“But the fundamental problem remains: the current business rates system urgently needs review and reform, as promised in the government’s manifesto.
“The inequitable, disproportionate burden for hospitality businesses - while digital companies all too often escape business rates altogether - means that hospitality operators, including many small businesses, are facing potentially disastrous rates bills.”