West Sussex County Council will write to the Government to urge them to lower business rates for hospitality and night-time businesses, in a bid to boost local economy and protect jobs across the county.
At full council on Friday 17 October 2025, county councillors debated a notice of motion on how to support the hospitality and night-time sector amidst rising costs. Business rates, National Insurance contributions, energy prices and taxation are all putting unsustainable pressure on businesses and workers in the sector, with many facing real risk of closure.
Councillors noted that the hospitality sector and night-time economy are vital to West Sussex, employing thousands of residents, sustaining local supply chains and contributing significantly to the county’s cultural identity and economic growth. From pubs, bars and restaurants to nightclubs, theatres, cinemas and concert venues, these businesses play an essential role in the life of our communities.
Protecting the sector is critical not only to safeguarding jobs but also to keeping high streets vibrant, attracting visitors and ensuring our communities remain strong and connected.
The notice of motion, proposed by Cllr Bradbury on 29 September 2025, outlined how reduced rates and fairer taxation could have a significant impact on the sector’s viability. It also highlighted the importance of ensuring that tips and service charges are paid directly to employees without being subject to income tax, as a way to reward hard work and support those on lower wages.
The council is therefore urging the Government to:
- Introduce a significantly reduced level of business rates for hospitality and night-time economy businesses.
- Reduce employers’ National Insurance contributions and VAT in this sector to protect and grow employment.
- Ensure that tips and service charges are paid directly to employees without being subject to income tax.
West Sussex County Council Leader, Councillor Paul Marshall, will now write to the Chancellor of the Exchequer and to all West Sussex Members of Parliament, asking them to support these measures.
The council will continue to champion policies at both local and national level that strengthen, sustain and grow the hospitality and night-time economy in West Sussex.
Watch the meeting and read the background briefings: Agenda for County Council on Friday, 17 October 2025, 10.30 am
