The relief is limited in scope and does not extend to other community-focused hospitality businesses, including hotels, restaurants and cafés.
Under the plans, the additional relief will be funded through a review of existing tax reliefs available to certain business sectors, including vape shops. The Government has indicated that support should be focused on businesses that contribute to the vibrancy of community high streets.
The proposal comes following the loss of previous, more generous and wider-ranging relief schemes that supported the hospitality industry.
By comparison, businesses in Wales currently benefit from a broader scheme, with a 15% business rates discount available during the 2026/27 financial year for eligible pubs, restaurants, cafés, bars and live music venues.
Commenting on the announcement, Andrew West, Director of Business Rates at Cooke & Arkwright, said, “The proposal results from the loss of the previous more generous and wider ranging relief schemes for the hospitality industry. Whilst welcome, the cut is targeted at a small group of uses. It is unlikely the loss of revenue will be covered by current reliefs enjoyed by vape shops.”
While the proposed relief will provide support for eligible operators, questions remain regarding the exclusion of other hospitality and leisure businesses that also contribute significantly to local economies, employment and high street vitality.
Further details are expected ahead of the planned introduction of the relief in 2027. Cooke & Arkwright's Business Rates team will continue to monitor developments and provide updates as more information becomes available.
For advice on the potential impact of business rates changes on your property portfolio, please contact us.
