THE LEADING PUBLICATION FOR THE HOSPITALITY SECTOR & LICENSED TRADE Issue 281
Issue 251 www.CLHNews.co.uk
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As Treasury Seeks to “Strike Right Balance”
This reduction will be funded by a higher multiplier for properties with a rateable value above £500,000.
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Lower Tax Rates for Hospitality a “Positive Step”... The Treasury has unveiled plans to transform business rates From April 2026, introducing permanently lower business rates multipliers for qualifying retail, hospitality, and leisure (RHL) properties in England with a rateable value under £500,000.
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The report comes as the Chancellor sets out her intentions to go further on legislation to cut red tape and deregulation to drive growth and will explore fixing sudden jumps in business rates – known as “cliff edges” – that can discourage small business investment and growth. This is one option in the business rates interim report.
Currently when a business opens a second property, they lose access to all Small Business Rates Relief (SBRR), holding businesses back from expanding. The Government has also ruled out more frequent business rates revaluations as part of its response to the Transforming Business Rates Discussion Paper, The decision means revaluations will remain on the triennial cycle, which ministers said strikes the “right balance” between fairness and certainty. The move comes only two years after the cycle was shortened from five years, following years of pressure from businesses to make the system more responsive to market conditions.
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