A Shifting Landscape for Hospitality and Leisure.
The hospitality and leisure sectors, still recovering from the economic disruptions of recent years, are particularly sensitive to changes in fixed costs like business rates.
In respect of the current 2025/26 rates year, the government have reduced the Retail, Hospitality, and Leisure (RHL) relief to only a 40% discount, capped at £110,000 per business. However, these 2025/26 changes are largely an interim measure as the government prepares for more fundamental reforms from April 2026.
There will be a national Rating Revaluation from 2026 that will rebase rating assessments. The intention is also to introduce permanently lower business rates multipliers for RHL properties with a rateable value under £500,000. This will be funded by a new, higher multiplier for all properties (across all sectors) with a rateable value over £500,000, which will include many larger hotels, leisure complexes, and distribution warehouses.
These changes will undoubtedly lead to higher business rates bills for a large number of pubs, restaurants, hotels, cinemas, gyms, and other leisure venues. This added financial pressure comes at a time when many are also grappling with rising energy costs, inflation, and wage increases.
The rates for these new multipliers were announced in the Autumn Budget, however, under subsequent pressure the government are considering some alterations that are anticipated shortly, but this is creating a degree of uncertainty for their future financial planning.
Businesses are urged to review their rateable values, understand how these changes will impact their specific circumstances, and factor increased costs into their financial forecasts and cash flow projections. Exploring scope for challenging rateable values and any other available reliefs will be crucial for navigating this evolving landscape.
Our team can help you navigate these changes and conduct a ‘no obligation’ initial review of scope.
Who we are
We are a friendly and approachable firm of Chartered Surveyors, having been established over 30 years ago, working tirelessly to save our clients’ money on their business rates and Council Tax.
What we stand for
Our hallmark is dealing with each job as a bespoke project, starting with its own high-level partner triage, with a surveyor then being tasked with pursuing an appeal where appropriate.
In the background, our administrative team deals with securing any eligible reliefs and rebates – ensuring the clients always comes first.
How can we help?
Please contact us, to register your interest. We will then review and on a ‘no obligation’ basis. We will conduct some initial research and let you know our thoughts on the scope to appeal.
Hospitality & Leisure client, North England
A key factor in enabling us to effectively evaluate a property is the ability to compare it with similar premises in the surrounding area. This comparative approach often provides a valuable starting point. However, with food and drink establishments this can prove difficult as it is uncommon to find several directly comparable businesses located nearby.
In one such case within the hospitality and leisure sector we were asked to review a property portfolio and faced this exact challenge. Despite the limitations we developed a strong understanding of the specific issues affecting the business and successfully achieved actual savings of over £42,000.
Hospitality & Leisure client, Hampshire
Leisure accommodation is typically valued for business rates purposes based on a Receipts (turnover) basis.
Our specialist rating valuers who work extensively in this sector analysed the accounts compared with the hypothetical occupier and discussed additional reductions in the assessment due to their comprehensive redevelopment programme. Savings through the rating list period exceeded £60,000.
