UK government should follow Northern Ireland’s lead in freezing hotels rate revaluations
The UK government must follow Northern Ireland’s lead and freeze hotel business rates revaluations.
Frazer Callingham, managing director of Starboard Hotels, said: “After an outcry from hotels and pubs in Northern Ireland, there has been a halt in the rate revaluation process. The UK Government must follow suit as many hotels can ill afford a further increase in costs.”
He added: “Under current UK revaluation rates, on 1 April 2026 our Rateable Value for one of our hotels will be increased from £250,000 to £780,000. A rise in rates payable of nearly £300,000 a year. In Northern Ireland, 2027’s business rates will be calculated using current valuations. This means rates bill increases will be far smaller.”
Frazer said: “This valuation freeze gives hospitality businesses in Northern Ireland the time and capacity to fairly challenge proposed business rates. Whereas the UK’s transitional cap reliefs are in place so operators can adjust to the ‘new normal’ of increased rates and taxes.”
He added: “If the UK government will not halt the revaluation process, then they should at the very least extend business rates relief across the whole industry, not just to pubs and live music venues. Hotels and other hospitality businesses have been explicitly excluded from the rates relief packages when they suffer just as much with rate rises.”
Darsh Shah, a partner at leading audit, tax and business advisory firm, Blick Rothenberg, said: “The comment by Rachel Reeves that ‘the situation the pubs face is different from other parts of the hospitality sector’ is beyond ridiculous as hotels are facing the steepest average rates increases across the sector.”
He added: “A rates relief package for all of hospitality should be considered as the entire sector is facing the same hikes in costs of business rates and employment. It is imperative that the UK hospitality landscape is treated fairly to overcome these challenges.”
Darsh said: “The hospitality sector is the seventh largest of the main sectors in terms of number of businesses registered. At this rate this government will be responsible for its long-term contraction. I will not be surprised if it is no longer in the top 10 of the main sectors in the future.”
He added: “While the pub sector will benefit hugely from the £100m annual support package until 2029, it is not enough. I will not be surprised if there is a further climbdown on other decisions made by Rachel Reeves at the last Budget in the coming months.”