Hospitality and licensed venues stand to benefit from new Government plans to lower business rates

The Government’s latest proposals to tighten VAT enforcement on online marketplaces could deliver long‑overdue relief for hospitality and licensed businesses, UKHospitality reported. Ministers have committed that any additional revenue raised will be reinvested into improving the business rates system for pubs, restaurants, hotels and other high‑street operators — sectors that have been disproportionately hit by recent revaluations.

Hotels and restaurants have faced some of the steepest increases, with business rates rising by 115% and 54% over the past three years. Pubs, cafés and licensed venues continue to struggle under what UKHospitality describes as a “broken” system that places bricks‑and‑mortar operators at a disadvantage compared with online giants.

Kate Nicholls, Chair of UKHospitality, said the proposals must translate into meaningful reductions for the venues most affected. She emphasised that hospitality businesses — particularly those operating licensed premises — have carried the heaviest burden since April’s revaluation and need concrete action to level the playing field.

UKHospitality has backed the Government’s consultation and is calling for all revenue generated from improved VAT compliance to be directed towards lowering business rates for high‑street hospitality and licensed venues. The organisation says this is essential to support pubs, restaurants, hotels and nightlife operators that anchor local economies and community life.