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Business Rates Overhaul Puts Hotels and Pubs at Risk, Industry Warns

Industry groups warn new property valuations will force closures unless ministers extend rates relief beyond pubs.

Overview

  • New business rates confirmed in November take effect on April 1 following property revaluations and the end of Covid-era discounts.
  • UKHospitality projects more than 2,000 hospitality venues could shut in 2026 without broader support, roughly six closures a day.
  • Hotels face the steepest burden, with an average £28,900 rates rise this year and a three-year increase of about £205,200, and 574 sites identified as at risk.
  • Pubs receive targeted help through a £4.3 billion government fund, but ministers have not detailed any comparable relief for restaurants, hotels or B&Bs.
  • VOA analysis shows about 520 pubs have closed permanently in the past 18 months, costing an estimated 7,800 jobs, as some pubs report banning Labour MPs in protest.