Government support for hospitality that does not tell the full story

Why many hospitality businesses will still pay more 

The detail tells a different story. The temporary 40% discount introduced during Covid is being withdrawn. At the same time, new rental valuations reflect stronger post pandemic trading conditions, which pushes rateable values up for many premises. 

When you place these two changes together, a large number of hospitality businesses will see higher bills, not lower ones. Industry modelling suggests that typical pubs could face double digit increases in their rates burden over the next few years, even with transitional relief in place. Hotels face significantly higher rises because of the scale of their properties. 

A budget that appears supportive but shifts more cost onto high streets 

This has led to frustration across the sector. Trade bodies have described the package as smoke and mirrors because the headline announcement of lower multipliers masks the fact that the underlying tax base is increasing. The sector is already absorbing higher wages, energy costs and duty changes and confidence on the high street remains fragile. 

Although the government has argued that large warehouses will shoulder more of the burden, early analysis shows that many hospitality venues face steeper increases than the online operators they are meant to be competing with.

What this means for operators 

For many pubs, restaurants and hotels, the promise of generous support does not match the financial reality. The long term direction of travel is towards higher business rates revenue overall and a significant share of that will be drawn from high street businesses.

How Gravita can help 

This comment piece does not provide tax advice. If you want to understand how these changes may affect your sites, your cost base or your investment planning, you can contact Gravita for clear, practical guidance tailored to your business.