A CRITICAL TIME TO REVIEW RATEABLE VALUES: HARRIS LAMB CALLS ON LICENSEES TO TAKE IMMEDIATE ACTION OVER GOVERNMENT’S HOSPITALITY BUSINESSES RATES ANNOUNCEMENT

With the news that hospitality and music venues in England will be given a 15% discount on their business rates bills from April, along with a two year freeze,  Harris Lamb’s expert Licensed and Leisure team is urging clients to act immediately to ensure that the Rateable Values they have been issued are correctly assessed.

The announcement this week followed a backlash against November’s Budget, which the Retail, Hospitality and Leisure sector said did not go far enough to offer support to businesses, despite Chancellor Rachel Reeves’ stating that the government was introducing “permanently lower tax rates” for more than 750,000 Retail, Hospitality and Leisure properties, funding the change by introducing higher rates on business properties with Rateable Values of £500,000 or more.

But with many pubs having seen major increases in their business rates bills – and more than a thousand of them having banned Labour MPs from their premises – the government has now announced an £80m package that will see eligible pubs and live music venues benefit from a 15% business rates relief in 2026-27, in addition to the support pledged in November, and that their bills will then be frozen for a further two years.

James Ward, of Harris Lamb’s Business Rates team, and a Companion of the British Institute of Innkeeping (BII), said: “The first observation to this week’s announcement is that hotels, restaurants and other businesses within the sector are also at risk, with UK Hospitality already calling for the support package to be widened to include them.

“But it’s also important to note that Rate Liabilities being frozen doesn’t mean that they were correct in the first place.

“In a matter of weeks, we will be able to officially challenge Rateable Values issued in the 2026 Rating List, so it is essential that all those business impacted by this new legislation ensure that their 2023 RV is accurate so that the frozen liability for the next three years is fair. This option closes on March 31st and requires immediate action,” he said.

James added that for clarity, the new legislation did have caveats that businesses might have missed.

“A key point regarding this week’s announcement is that the 15% relief will not be capped as the old reliefs were, which is very good news for large managed house estates who can benefit from the change.

“The new liability is based on current liability with Transitional Phasing in order to cap large increases. This Transitional Phasing will be linked to the NEW RV for 2026, which will dictate the percentage increase a business can expect in the first year! Business with an RV of up to £20,000 will qualify for a 5% increase, those with an RV of £20-100,000 a 15% and those over £100,000 can expect a 30% rise,” he explained.

“From April 1st, we will be able to work with clients to minimise their new 2026 Rating List entry, whether that is to seek a lower Rateable Value to protect them in the future and lower current subscription costs or to ensure that the current level of Business Rates liability is accurate, and to discuss whether a business could benefit from reclassification in the 2026 Rating List, such as being recategorised from a restaurant to public house.

“The process is very complex and it’s essential to seek expert advice at this critical time,” he added.

For expert guidance, clarification and navigation around the 2026 Revaluation, contact Harris Lamb’s Business Rates team on rating@harrislamb.com.