UKHospitality has reported that hospitality properties in England will see their business rates bills rise by an average of £32,714 over the next three years, following the Chancellor’s decision not to increase the multiplier discount and to increase rateable values.
New analysis from UKHospitality has found that hospitality businesses in England will see their business rates bills rise by an average of £32,714 over the next three years, as a direct result of the November Budget.
The “shocking” figure represents a 15 percent increase on the current average of £20,835, and comes after the Chancellor refused to implement recommendations from the trade body to increase the multiplier discount.
“Business rates tax hikes will hit every city, town, village and high street in the country,” said UKHospitality CEO Allen Simpson. “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 terms, 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.”
Though Allen noted that transitional relief will “soften the immediate impact,” price increases, job losses and business closures will accelerate, meaning “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.”
And averaging out the hit over the coming years doesn’t necessarily highlight the real shock businesses will feel from the budget rates raid. This next rates round in England, for example, might seem more bearable – but that’s against a backdrop of rapidly rising costs and low consumer confidence which will do very little to offset the15 percent rise in rates to the tune of £3,126.
But April 2027, the picture turns gruesomely Goya. Rates will rise 48 percent, up by more than £10,000 on today’s level. And in 2028-29, it’s almost £20,000 more than current annual levels – a 94 percent hike to £40,409.
No wonder the hospitality sector is enraged, although given these figures most probably won’t be around to vent that anger.
Rate hate
Allen Simpson 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…
Originally published on Coinslot on January 4, 2026. Republished with permission.