Deutsche Numis joins UKHospitality to unpack UK Budget and latest business rates revaluation

Tim Barrett, CFA, Senior Analyst at Deutsche Numis, joined Kate Nichols, Chair of UKHospitality, this week, to unpack the implications of the 2025 UK Budget and the latest business rates revaluation.

The discusion explored business rates and Valuation Office Agency (VOA) methodologies and operational impacts across hospitality to provide policy clarity and actionable next steps. Key takeaways from UKHospitality included:

💡Sharp revaluation spikes: Removal of COVID-era suppressions and a shorter revaluation cycle have driven significant increases in rateable values - particularly for turnover-based valuations in hotels. The end of relief has also impacted smaller, tenanted pubs.

💡Political choices on relief: Treasury opted for a 5p Retail, Hospitality & Leisure (RHL) discount, rather than the 20p allowed in legislation, reflecting broader political trade-offs and sector prioritisation.

💡Investment risk: Rateable value hikes of up to 400% impact margins and inbound investment, with high property taxes, VAT, and labour costs potentially diverting capital away from the UK.

Thank you to UKHospitality for joining this insightful event.