Last week Chancellor Rachel Reeves claimed to have introduced the lowest taxes since the early 1990’s in the 2025 Autumn Budget.
However, the promise to ease the burden on high-street businesses has been challenged by experts.
Some 87.6% of hospitality outlets will see an increase in their rateable value from April 2026, analysis of 15,000 venues by market intelligence firm Oxford Partnership revealed.
For pubs, the average annual business-rates bill will jump from £8,899 to £15,630, a 78% rise. Larger venues with rateable values above £500,000 could face increases of more than 200%, according to the data.
Continued contraction
Oxford Partnership’s latest Market Watch data showed the UK now has fewer than 100,000 trading venues, marking a continued contraction in the hospitality estate.
Adding to the pressure, the Budget introduced an inflation-linked alcohol duty rise and increases to the national living wage and national minimum wage, with labour costs already accounting for almost 50% of operators expenditure, Oxford Partnership added.
CEO Alison Jordan said: “Pubs and restaurants are exposed on every front. Business rates are set to jump sharply at the same time as wage costs climb, VAT reform remains off the table and duty is rising again.
“These pressures do more than erode margins; they undermine the long-term viability of venues that play a vital role in our communities. Structural reform is now essential.”
From April 2026, the 40% discount will be replaced with multipliers set 5p below the standard rate, funded by a new 2.8p high-value surtax on properties with a rateable value above £500,000. A small subset of properties will see a 38.2p multiplier.
Sharper rises
It will raise £965m in 2026/27, representing a 30% reduction in support, according to further research from global tax and audit firm Ryan.
Large and medium businesses can expect to see sharper rises, the data indicated.
Those with a rateable value between £51,000 and £500,000 will be taxed at 43p, or 44p with the supplement, while properties above £500,000 will face 50.8p, or 51.8p with the supplement. It represented some of the highest multipliers ever applied, Ryan claimed.
Ryan practice leader for Europe & Asia-Pacific property Alex Probyn said: “A large number of high street premises will pay far higher tax rates than in the early 1990s with many facing the highest rates ever applied.
“When you look at the total funding envelope, support for high street businesses falls by £420m next year. The headline message doesn’t match the fiscal reality.”
