UKHospitality – sector business rates rises to wipe out more than half of ‘Small Business Saturday’ benefit: New analysis from UKHospitality has revealed small hospitality venues will see business rates bills rise by £318m over three years, which is more than half the £634m annual spend on Small Business Saturday today (Saturday, 6 December). The analysis revealed the smallest hospitality properties, with a rateable value below £51,000, will be seeing sharp increases to business rates over the next three years. In 2026-27, rates will increase £38.6m – an increase of 13%, in 2027/28, rates will increase £110.6m – an increase of 38%, and in 2028-29, rates will increase £168.5m – an increase of 58%. In total, over three years, it’s a £318m increase to business rates bills for those small hospitality businesses. UKHospitality said the “shocking” figures reveal the extent to which the government’s business rates reforms have unravelled in the week after the Budget. In a letter to all MPs this week, UKHospitality said “this outcome is totally contrary to the government’s manifesto commitment” to level the playing field between the high street and online giants. It corrects claims from government ministers, who have repeatedly referenced the Budget delivering reduced taxes for hospitality businesses – which is the opposite of the reality facing the sector. Even with the reduced multiplier, business rates will increase by 76% for the average pub and 115% for the average hotel over three years. This falls dramatically to just 16% for distribution warehouses, used by online giants, and 4% for large supermarkets. UKHospitality is urging the government to fix the situation by either increasing the business rates discount for hospitality to the full 20p permitted in legislation or commit to delaying business rates revaluation levels for hospitality businesses and freeze them at 2023 levels. UKHospitality chief executive Allen Simpson said: “On the day that we celebrate and support small businesses, the government’s business rates policy is doing the opposite. Hospitality and the high street is being taxed out and all too often the most vulnerable businesses are small businesses. There’s no doubt that we will see business closures, job losses and price increases all accelerate as a result of these changes. Every single high street is going to feel a massive hit, and so will our communities when much-loved venues are forced to close as a result of this policy. The government has the power to fix this, and we have presented clear solutions that will allow them to do so. I hope it recognise the very real threat these increases present to our high streets and acts urgently.”
Propel’s sector-leading guide to the UK’s 500 largest hospitality companies to be made free to Premium subscribers on day of publication: Propel’s sector-leading guide to the UK’s 500 largest hospitality companies is making its return – and will now be available to Premium Club subscribers on the day of publication. The Propel 500 – 2026 report will analyse the companies leading the charge in hospitality, reporting on turnover, number of sites and key staff. The 45,000-word report will feature exclusive analysis to provide a full understanding of the market’s dynamics, as the top companies in the sector shift position after a challenging year.
Mark Wingett will review the mergers and acquisitions changing the shape of the Top 500 as size increasingly matters.
Katherine Doggrell will examine the key developments in UK hotels and look into one of the sector’s brightest lights, experiential leisure, while
Tim Street dissects the UK’s rapidly developing franchise market. Data expert
Mark Bentley, business development director at HDI, will look at emerging growth sectors, and
Meaningful Vision founder Maria Vanifatova will analyse the latest trends in the quick service restaurant market. Propel 500 – 2026 will be released on Friday, 9 January at 9am and will be available free to Premium Club subscribers.
The report will be available to non-Premium Club subscribers for £595 plus VAT. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up and to pre-order Propel 500 – 2026.
