In her recent UK budget, Rachel Reeves confirmed a business rates relief scheme for RHL (retail, hospitality and leisure) businesses. Temporary reliefs are being offered in 2026, while the Government prepare a permanent system to come into effect in 2027.
Under the temporary relief scheme, if your property qualifies and is occupied for the financial year 2025/26 ( between 1 April 2025 and 31 March 2026), you get a 40% discount on your business-rates bill. There will be a cash cap limit of £110,000 per business. This scheme is worth over £1.5 billion in an effort to aid high street businesses amid rising costs.
The later, more permanent system will see “permanently lower tax rates for over 750,000 retail, hospitality and leisure properties”, paid for with higher rates on the UK’s biggest businesses.
Brewers across the country have been making their opposition to these changes known: the independent brewers say that once the revaluations are taken into account and the transitional relief unwinds, pubs will typically pay 76% more in business rates by 2029 when large online tech firms would pay only 16% more. (The Guardian)
UKHospitality has presented figures and stats on how these new business rates may affect hospitality businesses in the coming years: In 2027/28, an average pub’s rates will be £4,500 higher than today, and in 2028/29 £7,000 higher. In total, over the three years, an average pub will pay an extra £12,900. A hotel will be paying an extra £28,900 in rates next year. In 2027/28, it will be £65,000 higher than today and in 2028/29 £111,300 higher. In total, over three years, an average hotel’s rates bill will increase by £205,200. By 2028/29, an average pub’s business rates will have increased by 76% and an average hotel’s by 115%.
Calculation and rate examples for the coming year can be found here.
