UK Hospitality Business Rates Report 2026
What pubs, restaurants, cafes and hotels are worth to the rating system, and what they pay. Built from the full Valuation Office Agency rating list of 2,138,259 properties.
Business rates are worked out from a property's rateable value, set by the Valuation Office Agency, multiplied by a rate set by government. For 2026 there is a lower multiplier for retail, hospitality and leisure (38.2p in the pound) and full relief for the smallest premises. Together these premises carry an estimated £2.92bn a year in business rates before relief (£2.83bn once small business rate relief is applied). The figures below cover every pub, restaurant, cafe, hotel and guest house the VOA records by name in the rating list as of 18 June 2026.
Notable findings
Rateable value and rates by business type
| Business type | Premises | Median rateable value | Average rateable value | Indicative annual bill |
|---|---|---|---|---|
| Pubs | 38,793 | £24,000 | £42,674 | £9,168 |
| Restaurants | 34,832 | £27,500 | £51,920 | £10,505 |
| Cafes | 20,476 | £11,500 | £18,324 | Usually £0 (full relief) |
| Hotels | 7,722 | £99,000 | £323,877 | £47,520 |
| Guest houses & B&Bs | 6,838 | £7,600 | £9,925 | Usually £0 (full relief) |
Indicative annual bill applies the 2026 multiplier to the median rateable value for each type, before any relief: 38.2p for premises under £51,000, 48.0p at or above it. Premises with a rateable value up to £12,000 usually pay nothing after small business rate relief. Actual bills vary with reliefs, transitional arrangements and local decisions.
Where hospitality sits against the relief thresholds
The thresholds matter: premises up to £12,000 usually pay no rates, those up to £51,000 get the lower hospitality multiplier, and only the largest pay the standard rate.
Methodology and sources
Built from the complete Valuation Office Agency 2026 rating list for England and Wales (2,138,259 non-domestic properties). Hospitality premises are identified by their VOA bill description (for example "public house and premises", "restaurant and premises", "cafe and premises"), giving 108,285 premises. Rateable value figures are the published list values as of 18 June 2026. Indicative bills use the 2026 multipliers published by gov.uk. A property can fall under more than one description, so category counts are not a strict partition. The household comparison uses the average Band D council tax for England in 2026-27 (£2,392), published by the Ministry of Housing, Communities and Local Government. The 50% local / 50% central split refers to the standard business rates retention scheme in place since 2013-14; some areas retain a higher share under devolution and increased-retention arrangements.
This is a count of premises the VOA describes as licensed and sit-down hospitality, not of every UK food business. The VOA records most quick-service outlets (takeaways, sandwich shops, bakeries and delis) under the generic "shop" description rather than by food type, so they cannot be isolated reliably and are not included here. Mobile caterers and food trucks have no rateable premises, so they fall outside business rates altogether. By comparison, the Food Standards Agency rates roughly 550,000 food businesses, because that scheme also covers retailers, schools, care homes, manufacturers and mobile caterers.
Source: Valuation Office Agency 2026 rating list (England & Wales), Open Government Licence v3.0. Contains public sector information licensed under the Open Government Licence v3.0.
Cite this report
Paddl (2026). UK Hospitality Business Rates Report 2026. Data from the Valuation Office Agency rating list (Open Government Licence). https://paddl-ai.co/reports/uk-hospitality-business-rates-2026
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Download infographic (PNG)Frequently asked questions
How much does UK hospitality pay in business rates?
Across 108,285 pubs, restaurants, cafes, hotels and guest houses, the estimated annual business rates liability is about £2.92bn before relief, or roughly £2.83bn once small business rate relief is applied, based on the 2026 multipliers and the VOA rating list.
How do I know if we are being charged the right business rates for our premises?
Start with your rateable value, which is published for every property on the VOA website. Your bill should be that value multiplied by the correct 2026 multiplier (38.2p in the pound for most hospitality premises under £51,000), less any relief you qualify for. If your rateable value looks too high for the size and trade of your premises, or you are not receiving small business or retail, hospitality and leisure relief, there is a good chance you are paying more than you should.
What is the average business rates bill for a UK pub?
The typical (median) UK pub has a rateable value of £24,000. Applying the 2026 retail, hospitality and leisure multiplier of 38.2p, that gives an indicative annual business rates bill of about £9,168 before any relief.
What is the rateable value of a UK restaurant?
The median rateable value of a UK restaurant is £27,500, compared with £24,000 for a typical pub.
How many UK hospitality premises pay no business rates?
About 30.6% of hospitality premises have a rateable value of £12,000 or less, so usually pay nothing after small business rate relief.
What is the 2026 business rates multiplier for hospitality?
38.2p in the pound for retail, hospitality and leisure premises with a rateable value under £51,000, and 48.0p for premises at or above £51,000.
What is the total rateable value of UK hospitality?
UK hospitality premises have a combined rateable value of £6.38bn, across 108,285 pubs, restaurants, cafes, hotels and guest houses in the VOA rating list.
Which type of hospitality business has the highest rateable value?
Hotels. The typical hotel has a rateable value of £99,000, far above a typical pub (£24,000) or guest house. Hotels hold around 39% of the sector's total rateable value despite being just 7% of premises.
Check what relief you could be owed
Many hospitality businesses pay more than they need to. Paddl's free rates relief checker reads your bill and flags the reliefs you may be missing.