Retail, Hospitality & Leisure Sectors Brace for a Massive 2.66 Billion‑Pound Tax Surge in England

Retail, Leisure & Hospitality: A New Tax Surprise Awaits

Brace yourselves, high‑street shops, cosy pubs, and buzzing cafés—the government’s latest tax plan is set to push your annual business‑rates bill up by a staggering £2.66 billion from next April. How did we get here? Two tax‑hike “double whammies.” Let’s break it down.

What the Autumn Statement told us

Renewed relief – The former Conservative Government has kept the Retail, Hospitality and Leisure Business Rates Relief Scheme alive for the 2024/25 fiscal year.
One‑year only – It lasts until 31 March 2025, and the Treasury didn’t even fold it into the Office for Budget Responsibility’s long‑term forecasts.
Cash cap – Eligible shops, bars and hotels can still claim up to 75 % off their rates, capped at a maximum of £110,000 per business.

Inflation’s bite: the next business‑rates bump

The Consumer Prices Index (CPI) published on 16 October will guide the next 2025/26 rate hike. While economists expect CPI to dip from 2.2 % in August to 1.9 % in September—comfortably under the Bank of England’s target—the Uniform Business Rate will still rise annually in line with inflation.

Financial fallout for the retail and leisure worlds

Altus Group’s analysis of official data shows 252,414 eligible properties will now carry a £545 million heavier burden across all property types.
Out of this, the Retail, Leisure & Hospitality sectors alone will shoulder an extra £250 million.
Despite the country’s “black hole” of £22 billion in public finances, the Chancellor must “prevent a cliff edge” for these sectors while not letting the high streets feel the sting of excess.

Government’s promise: a fairer tax game plan

James Murray, the Exchequer Secretary, told Parliament that the government is committed to a system that raises the same revenue but “fairer.” Key points:

Level the playing field between brick‑and‑mortar shops and online giants.
Incentivise investment.
Tackle vacant properties.
Support local entrepreneurship.

“We’ll work closely with all stakeholders, especially those bearing the greatest burden from business rates,” Murray added. “We’ll disclose further details soon.”

What you’ll keep paying

The local authorities in England will collect £26.27 billion from non‑domestic rating income in 2024/25 after all the mandatory and discretionary reliefs have been applied.