Editor’s Viewpoint: A Welcome Relief, But More Work Remains

By Peter Adams, Editor, CLH News.

Sometimes in this industry, we need to pause and acknowledge when something genuinely positive happens, particularly in light of recent times when nothing has!

The Treasury’s confirmation that permanently lower tax rates for retail, hospitality and leisure properties – including shops, pubs, and restaurants with rateable values below £500,000 will be introduced from April 2026 is precisely that kind of news.

We could all do with some good news, and this certainly qualifies.

This is a huge step forward and will provide some welcome relief for hard-pressed operators.

With 70% of the hospitality sector comprising SMEs, this reform touches the very heart of our industry.

For too long, business rates have been an unfair burden on the sector, acting as a punitive tax on bricks-and-mortar businesses and wholly disproportionate compared to other sectors.

This welcome change recognises the reality that property-intensive sectors like ours face unique challenges.

The economic contribution of hospitality SMEs cannot be overstated. These businesses directly contribute £93 billion annually to our economy, create vital employment that helps reduce unemployment and supports regional economies, and generate substantial tax revenues for the government – £54 billion in recent figures.

It’s about time the tax system reflected this contribution rather than penalising it.

However, let’s be clear: welcome though this reform is, the hospitality sector still remains one of the most unfairly taxed in the economy. More needs to be done.

UKHospitality is absolutely right to push for the maximum possible discount to the multiplier for all hospitality properties under £500,000 rateable value when the Chancellor announces the full details at the Budget on 26 November.

The timing of this positive news feels particularly poignant given the current challenges facing London’s hospitality businesses. As our story on page 14 details, the ongoing tube strikes are having a devastating effect on the capital’s venues, with a staggering 67% drop in bookings during strike periods.

I was in London for a seminar on Wednesday and made a specific point of observing the hospitality scene – and yes, it really was worryingly quiet.

According to research, £4 billion has been lost to the London hospitality sector since 2022 due to transport disruptions – an outrageous amount that represents real businesses, real jobs, and real livelihoods.

The suggestion that Sadiq Khan should give hospitality businesses a rent and business rates holiday for strike-affected periods makes perfect sense.

These businesses are already grappling with rising Employer’s National Insurance Contributions, cost-of-living pressures, and increased living wage costs – they can ill afford weeks of negligible footfall through no fault of their own.

Here’s hoping for a quick resolution to the transport disputes. I would hate to see our sector held to ransom again in the lead-up to Christmas, traditionally our busiest and most crucial trading period.

The business rates reform represents the first meaningful step toward levelling the playing field, but it must be just that – the first step. The sector deserves a tax system that recognises its vital contribution to communities, employment, and the broader economy.

Until then, we’ll continue to fight for fairness and celebrate the wins along the way!

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I can always be contacted at edit@catererlicensee.com