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UK Businesses Brace for Shocking Rate Hikes
14 Jan
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.
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.
