Hospitality venues hit with average £32k business rates increase

December 20, 2025

New analysis from UKHospitality reveals that, on average, hospitality properties in England will see their business rates bills rise by £32,714 over three years.

1
Hospitality businesses in the Prime Minister’s constituency of Holborn and St Pancras will see an average increase of £96,430 over three years.
2
In the Chancellor’s constituency of Leeds West and Pudsey, over three years hospitality properties will see an average increase of £12,297.

The shocking figures reveal the scale of cost increases facing hospitality businesses across the country.

The numbers

Even when factoring in a lower multiplier – or tax rate – for the sector and transitional relief, the dramatic increases to rateable values means:

Next year, in 2026/27, the average hospitality property in England will pay £23,961 in rates – an increase of £3,126 (15%) on the current average of £20,835.
In 2027/28, it will pay £30,849 – an increase of £10,014 (48%) compared to today.
In 2028/29, it will pay £40,409 – a rise of £19,574 (94%) compared to the current average.
In total, the average increase to business rates totals £32,714.

Our ask

UKHospitality is calling for the Government to urgently act and increase the business rates discount for hospitality to the full 20p permitted in legislation.

Allen Simpson, Chief Executive of UKHospitality, said: “Business rates tax hikes will hit every city, town, village and high street in the country. Unfortunately, not one area of the country is spared.

“The Treasury were warned, by UKHospitality, to expect significant increases to rateable values, due to the previous revaluation being based on valuations during Covid. We laid out, in no uncertain times, that the maximum 20p discount to the multiplier was absolutely necessary to offset these rises in rateable values.

“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.

“Implementing a permanently lower multiplier for hospitality is the right policy, but delivering only a 5p discount leaves the policy fundamentally incomplete. The Government needs to deliver the full 20p reduction to the hospitality multiplier.

“The Government said it would help hospitality businesses – it’s time to take on board our solution and avoid this hospitality tax hike.”