Hospitality Venues Face Average £32,700 Rise In Business Rates

Hospitality businesses across England are facing a significant increase in business rates, with new analysis showing the average venue is set to pay an additional £32,700 over the next three years.

The figures, based on updated property valuations, indicate that despite targeted support measures such as a reduced hospitality multiplier and transitional relief, most pubs, restaurants, hotels and leisure venues will still experience sharp rises in their annual bills.

Under current projections, the average hospitality property will see its business rates bill rise to £23,961 in 2026/27, representing a 15% increase on current levels. This is expected to climb further to £30,849 in 2027/28, before reaching £40,409 by 2028/29 — nearly double today’s average liability.

While the impact will vary by location, the upward pressure is widespread. Some central London areas are forecast to see increases approaching £100,000 over the three-year period, while venues in parts of the North of England are also facing notable rises, albeit from a lower base.

Industry leaders have warned that the cumulative effect of rising business rates comes at a time when hospitality operators are already grappling with higher labour costs, energy prices and ongoing supply chain pressures. While transitional relief will soften the immediate impact, concerns remain that it will not prevent longer-term strain on cashflow and profitability.

There are renewed calls for government to go further by increasing the hospitality-specific business rates discount to the maximum level permitted under existing legislation, rather than the lower rate currently planned. Without stronger intervention, the sector has cautioned that operators may be forced to increase prices, reduce staffing or, in some cases, close sites altogether.

For the fresh produce industry, the implications are clear. Hospitality remains a key route to market for growers, wholesalers and suppliers, and sustained cost pressure on foodservice customers could influence purchasing decisions, menu design and volumes across fruit and vegetable categories.

As the hospitality sector looks ahead to the next revaluation cycle, industry bodies are urging policymakers to recognise the strategic importance of hospitality — not just as a consumer-facing industry, but as a vital driver of demand across the wider food and fresh produce supply chain.