When will business rates increase sharply for UK pubs?

Business rates are set to increase sharply over the next three years as Covid-era support is phased out and property values are reassessed.

What is the Valuation Office Agency's role in business rates?

The Valuation Office Agency (VOA) assesses the rateable value of business premises, which forms the basis for calculating business rates.

Which UK business sectors are most affected by rising rates?

Pubs, hotels, independent retailers, pharmacies, and gyms are among the sectors facing significant increases in business rates.

Home / Business and Economy / UK Businesses Brace for Shocking Rate Hikes

UK Businesses Brace for Shocking Rate Hikes

14 Jan

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Summary

Business rates to increase sharply as Covid support ends.
Pub valuations jumped 32%, some more than doubled.
Hotels may see rate increases up to 115% in three years.

UK Businesses Brace for Shocking Rate Hikes

As Covid-era support measures are phased out, UK businesses are bracing for a sharp increase in business rates over the next three years. These taxes, based on a property's rateable value reassessed every five years, are poised to rise significantly as commercial property values are adjusted post-pandemic.

Valuations have already surged for some sectors; pubs, for instance, have experienced an average 32% increase, with over 5,000 seeing their rateable values at least double. Despite government reassurances about adjustments, industry groups like UKHospitality report that hotels could face an average 115% increase in rates over the next three years, exceeding even the projected 76% rise for pubs.

Other sectors are also anticipating substantial hikes, with independent retailers facing similar challenges to pubs and pharmacies potentially seeing a 140% increase. Lobby groups for gyms and leisure centres also foresee a 60% rise. These escalating costs are raising concerns across various business sectors, with fears of widespread closures if support measures are not implemented.