The report confirmed the Government would provide a further update at the Autumn Budget 2025, on its plans to reform the business rates system.
But said it would also reveal the rates for its permanently lower tax rates for hospitality, including pubs, with rateable values below £500,000 from April 2026, and the rate for the high value multiplier to fund this.
The report said the permanently lower tax rates for these properties recognised the challenge business rates can place on property-intensive sectors.
It said the lower tax would provide “greater certainty” for those businesses and marked the first steps the Government is taking to transform the business rates system.
The Treasury already confirmed to The Morning Advertiser in July that it planned to set lower multipliers for pub businesses in the Autumn Budget.
Growth mission
Chancellor of the Exchequer Rachel Reeves said: “Our economy isn’t broken, but it does feel stuck. That’s why growth is our number one mission. We want to see thriving high streets and small businesses investing in their future, not held back by outdated rules or strangled by red tape.
“Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth. We want to help small businesses expand to new premises and building an economy that works for, and rewards working people.”
She added: “As announced at Autumn Budget 2024, from April 2026, there will be permanently lower tax rates for retail, hospitality and leisure properties - including shops, pubs, and restaurants. Full details will be announced at the Budget on 26 November 2025.”
However, UKHospitality (UKH) reiterated its call for the Government to apply the maximum possible discount for hospitality’s business rates at the Budget.
Association response
The trade body said these proposals were ‘positive’ and would help to rebalance the system, but it reinforced the critical need for the Government to apply the maximum possible discount to the multiplier for all hospitality properties under £500,000 rateable value.
UKH chair Kate Nicholls said: “Applying the maximum possible discount to the multiplier for all hospitality properties under £500,000 rateable value at the Budget in November is critical. That is the most significant and meaningful benefit that can come from these reforms, particularly with anticipated increases in rateable values coming into effect next April.
“The maximum discount should be introduced alongside a zero rate for hospitality properties over £500,000 rateable value, to ensure the reform is in keeping with the Government’s intention to level the playing field for the entire high street.”
