Hospitality firms each face paying nearly £33,000 more in business rates over the next three years after the Budget.
Analysis from industry body UK Hospitality showed the total was the average increase facing pubs, restaurants and hotels – despite Rachel Reeves’ pledge to ease the burden.
The Chancellor said at the Budget she would introduce ‘permanently lower tax rates for more than 750,000 retail, hospitality and leisure properties’.
But the complex formula used to calculate rates bills means many will pay more.
Broken promises: Rachel Reeves said at the Budget she would introduce ‘permanently lower tax rates for more than 750,000 retail, hospitality and leisure properties’
The analysis showed the average annual business rates charge for firms in the sector will climb from £20,835 to £23,961 in the 2026–27 financial year. That will rise to £40,409 by 2028–29 – almost twice the average now. And it means that over three years, the typical hospitality firm will be paying £32,714 more than at current levels.
Allen Simpson, chief executive of UK Hospitality, said the bills will be ‘simply unsustainable’ for many businesses.
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