Hotels and Resorts 'Snubbed' by Business Rates Relief, Industry Giants Claim
UKPulse Money Desk
Hilton and Butlins express frustration after being excluded from Andy Burnham's business rates relief pledge for pubs, clubs, and music venues. They argue hotels and resorts are vital to the UK economy and face significant tax burdens.
- Hilton and Butlins criticise the exclusion of hotels and resorts from recent business rates relief packages.
- UK Hospitality reports the average hotel faced an extra £28,900 in business rates in April, with a projected 115% increase by 2029.
- Industry leaders argue large hospitality firms are crucial employers and economic contributors, deserving of support.
- The sector is also opposing the new overnight visitor levy, or 'tourist tax', recently implemented in Edinburgh.
- Calls are growing for a comprehensive, sector-wide solution to rising costs and taxes affecting the entire hospitality industry.
Hundreds of millions of pounds in business rates relief have been showered upon pubs, clubs, and music venues by Greater Manchester Mayor Andy Burnham, but the hospitality industry's giants are feeling distinctly left out. According to UK Hospitality, hotels and resorts like Hilton and Butlins have seen their business rates bills soar by an average of 115% between April 2026 and 2029, with some facing additional burdens of up to £111,300.
Stephen Cassidy, Senior Vice President of Hilton UK and Ireland, acknowledged the support for pubs but argued that hotels are equally deserving of relief. He highlighted the industry's significant economic contributions and its crucial role in job creation, particularly in coastal economies where large hospitality firms like Butlin's provide vital employment opportunities.
The average hotel business rates bill has risen by £28,900 since April 2026, according to UK Hospitality data, and Allen Simpson, Chief Executive of the trade body, warned that this trend will continue unless a sector-wide solution is implemented. He stressed that restaurants and hotels are equally struggling with rising costs and tax increases.
The new overnight visitor levy, or 'tourist tax', has also sparked industry concerns. The first UK city to implement such a charge, Edinburgh's levy has been met with opposition from leading trade bodies like UK Hospitality and the BBPA, who warn of its potential negative impact on holidaymakers, hotels, and tourism-related businesses.
Why this matters: This ongoing debate over business rates and new levies directly impacts the financial health of the UK's hospitality sector, a major employer and economic contributor. The decisions made will affect everything from hotel prices to the viability of beloved resorts and local pubs.
What this means for you: What this means for you: As a UK consumer, these tax pressures on hotels and resorts could lead to increased prices for accommodation and holidays within the UK. The introduction of tourist taxes in more cities could also add to the overall cost of domestic travel, potentially impacting your holiday budgeting.