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Hospitality venues in England are set to face an average increase of more than £32,000 in business rates over the next three years, according to new analysis from UKHospitality.
The figures suggest that the average hospitality property will see its annual business rates bill rise from £20,835 currently to £40,409 by 2028/29, despite the introduction of a lower sector-specific multiplier and transitional relief.
According to the trade body, the increases reflect higher rateable values following the latest revaluation, which was based on rental data from the Covid-19 period. It warned that the cumulative impact would place additional strain on businesses already facing rising costs.
The analysis shows significant regional variation. In Holborn and St Pancras, the prime minister’s constituency, hospitality businesses are forecast to face an average increase of £96,429 over three years. In Leeds West and Pudsey, the chancellor’s constituency, the average increase is expected to be £12,297.
From 2026/27, the average hospitality property is expected to pay £23,961 in business rates, an increase of £3,126, or 15%, on current levels. This is forecast to rise to £30,849 in 2027/28, a 48% increase on today, before reaching £40,409 in 2028/29, representing a rise of 94%.
UKHospitality said that while transitional relief would limit the immediate impact, it would not prevent a sharp rise in costs over time. In light of this, the trade body is calling on the government to apply the full 20p reduction to the business rates multiplier for hospitality that is permitted under existing legislation, rather than the 5p reduction currently planned.
Allen Simpson, chief executive of UKHospitality, said: “It did not heed that warning, and now the level of business rates increase over three years will be simply unsustainable for many businesses to absorb.
“While transitional relief will soften the immediate impact, it does not solve the problem. Price increases, job losses and business closures will all accelerate – that’s bad news for local economies, local jobs and local high streets.”
