The hospitality sector faces paying an extra £914m in business rates next year if help is not announced in the budget, the industry’s leading trade body has warned. 

UKHospitality said businesses in England were already facing a £866m increase due to a 75% business rates relief coming to an end next year. 

But, today’s inflation figures mean they may need to pay an extra £48m on top of that, it said.

Business rates rise every year based on September’s inflation figure, which was released today and came in lower than expected at 1.7%. 

For a large pub or restaurant, the two hikes combined would mean a £33,500 increase in rates bill, UKHospitality added.

At the moment, properties that are used for retail, hospitality or leisure purposes in England can each claim a maximum discount of £110,000 per year, or £315,000 over three years, under the Retail, Hospitality and Leisure Business Rates Relief scheme. 

But this is due to end in March 2025. 

“These inflation figures confirm that hospitality is set for an eye-watering £914m tax bill in April, if the chancellor doesn’t act at the budget,” Kate Nicholls, chief executive of UKHospitality, said. 

“Business rates must be addressed, or venues at the heart of communities will see their rates bills quadruple and find themselves making awful decisions about whether to shorten hours, close more days, lay off staff, or even close their doors for good.” 

We’ve only talked about England in this post – that’s because business rates are devolved to each UK nation.