Hotels: Business Rates
The question
To ask the Chancellor of the Exchequer, what assessment she has made that the support offered to the hotel sector on business rates is sufficient to protect jobs and investment, in the context of the significant rise in valuations.
Answered by Dan Tomlinson
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To respond to those who are seeing large increases, the Government has already acted to limit increases in bills, announcing a support package worth £4.3 billion package at the Budget.
The Government is also introducing new permanently lower tax multipliers for eligible retail, hospitality and leisure (RHL) properties. These new tax rates will benefit over 750,000 properties.
The Government has heard concerns from hotels about the ways they are valued for business rates and has committed to reviewing this.
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