UKHospitality warns over 2,000 venues could close in 2026 without urgent business rates reform, as rising costs threaten pubs, hotels and restaurants nationwide.
More than 2,000 hospitality venues could close in 2026 unless the Government acts to curb planned business rates increases, according to new analysis from UKHospitality.
The trade body estimates that 2,076 venues are at risk next year – equivalent to six closures a day – if no sector-wide intervention is introduced ahead of scheduled rises in April. The modelling forecasts the loss of 963 restaurants, 574 hotels and 540 pubs.
The warning comes as operators face steep increases in operating costs. The average hotel is set to see its business rates rise by £28,900 next year, climbing to a total increase of £205,200 over three years – a jump of 115 percent. Pubs face a 15 percent increase next year, equating to an extra £1,400, rising to 76 percent over three years, or £12,900.
The organisation is calling on the Government to raise the business rates discount for hospitality from 5p to the maximum 20p allowed under law, arguing this is essential to meeting its pledge to level the playing field between bricks-and-mortar businesses and online operators.
“Staggering increases to business rates will affect the entire hospitality sector and without a hospitality-wide solution, we will see significant business closures,” commented Kate Nicholls, chair of UKHospitality. “Hospitality is one of the nation’s biggest employers, but the money coming in the front door is simply not enough to offset the rocketing costs of doing business.”
Originally published on Coinslot on January 26, 2026. Republished with permission.