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Apr 3, 2025 4:52 pm
Global Media Network
UK Hospitality Seeks Business Rates Help
UK hotels, restaurants, and nightclubs are calling for more support with business rates after it emerged that Heathrow Airport will receive nearly £900 million in discounts over the next three years.
The discount is part of the £4.3 billion “transitional relief” fund announced in the budget to help businesses facing steep increases in rates. Heathrow’s relief is roughly a fifth of the total fund.
Without government intervention, Heathrow’s business rates would have jumped to £512 million this year, £514 million next year, and £523 million in the following year, totaling £1.5 billion over three years. With relief, the airport’s aggregate bill drops to around £650 million. Despite this, its rates will still rise by £50 million to £171 million this year.
While Heathrow, owned by foreign sovereign wealth and pension funds, receives a smaller percentage of support than local pubs, the total value of its package dwarfs the £80 million in additional discounts offered to pubs and live music venues across England this year.
Hotels, restaurants, nightclubs, and cafes did not get extra help beyond transitional relief, which capped most increases at 15% this year or £800 for the smallest properties. This relief will gradually reduce over the next two years as pandemic-era support ends and property revaluations take effect.
The Night Time Industries Association (NTIA) criticized the government for excluding nightclubs, grassroots electronic music, and recorded music venues from additional business rates relief given to pubs and live music venues.
Michael Kill, NTIA chief executive, said rising bills could lead to more closures. “We have already lost over a third of the UK’s nightclubs, yet the venues that remain are being charged higher business rates than ever, with fewer businesses left to carry the burden and no access to relief,” he said. “This is not targeted support, it is policy that actively accelerates decline.”
Kate Nicholls, chair of UKHospitality, which represents thousands of restaurants, hotels, and pubs, said the figures highlight the “crazy, distorting and broken” business rates system. She added that it is time for governments to deliver promised reforms.
The NTIA noted that while nightclub numbers have fallen by a third since 2017, property values have increased, meaning the sector as a whole faces higher rates. The industry is also under pressure from rising costs, including minimum wage increases, higher energy bills, and rising alcohol duties, which could force price increases for consumers.
“With alcohol duty rising in line with inflation and supplier costs continuing to increase, many businesses have little choice but to pass these costs on to consumers—despite already fragile trading conditions,” Kill said.
Airports will benefit from a significant portion of transitional relief, but Karen Dee, chief executive of AirportsUK, warned that rising business rates may still lead to higher prices for passengers and reduced investment in airport infrastructure.
“The chancellor has staked the UK’s growth on airports, and while the changes to transitional relief are very welcome, the sector’s business rates will still increase by over 100% and could force some to review billions of pounds of transformational investments across the UK and potentially put thousands of jobs at risk in the longer term,” Dee said.
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