Business Rates Reform: A Step in the Right Direction for Hospitality? 

After being largely overlooked in the Spring Budget, the hospitality sector was left wondering if meaningful support from the Government was still on the table. But recent developments have brought a renewed sense of optimism. The Government’s long-awaited commitment to permanently lowering business rates for the hospitality sector has now passed into law. This is a landmark move that could signal a more stable future for businesses across the country. 

While the finer details of this reform are still to be revealed in the upcoming Autumn Budget, the move has already been welcomed by industry bodies such as UK Hospitality. With venues continuing to face rising costs and uncertainty post-pandemic, this change could offer a much-needed lifeline. 

So what exactly has changed, and what should hospitality business be thinking about? 

Key points from the new legislation: 

• Business Rates Reform is now law: This means the long-promised overhaul of the outdated business rates system is finally happening. For a sector that contributes so significantly to employment and the economy, this is a crucial win.
   

• No more short-term fixes: The move away from temporary rate relief schemes towards a permanent system offers greater certainty and predictability for businesses.
   

• Details to come: Although the overarching reform has passed, the specifics, including how relief will be calculated, and which venues will benefit most, are expected in the Autumn Budget. This means businesses still need to remain alert and be ready to adapt once details are published.
   

• Mixed reactions on rate relief: While the structural reform is good, not all businesses may benefit equally. According to the Chartered Institute of Taxation, some changes to relief schemes could increase pressures on smaller operators.  

What’s clear is that this moment marks progress after years of lobbying and uncertainty. The industry has fought hard to be heard, and this latest reform shows signs that those efforts are beginning to pay off. 

At Punch Hospitality, we see this as a positive shift, one that acknowledges the vital role hospitality plays in local economies, culture and community life. There’s still work to be done, but the foundations are being laid for a more resilient, more confident sector.

Fingers crossed!