New Government proposals to lower business rates

June 24, 2026

Plans to improve hospitality business rates through tax reforms on online giants would be a positive step, UKHospitality said.

The Government is consulting on plans to more effectively enforce VAT collection rules for online marketplaces, with a commitment that “any revenue raised will be ploughed into improvements for the business rates system for pubs, restaurants, hotels and other businesses on the high street”.

We’ve backed the plans, and said the additional revenue should be used to meaningfully lower business rates for hospitality businesses most affected.

Hotels and restaurants faced the most significant increases to business rates following the most recent revaluation, with three-year increases of 115% and 54%, respectively.

Our response

Kate Nicholls, Chair of UKHospitality, said: “The Government committed to level the playing field between the high street and online giants, and it’s clear much more needs to be done to achieve that goal.

“We have been clear in our continuous engagement with the Government since the Budget that we need to see concrete action to lower business rates for those businesses most affected.

“Hotels and restaurants faced the most significant increases in April and pubs, cafes, and many more also continue to suffer from the broken businesses rates system.

“It’s right that any revenue raised from more effectively taxing online giants should be used to support hospitality businesses and I look forward to working with the Government on its proposals.”