The UK government is under renewed pressure to freeze hotel price revaluations after Northern Ireland decided to halt the process following an outcry from hotel operators.
Hotel owners and consultants warn that without similar measures in England, Scotland and Wales, many operators will face unsustainable cost increases from April 2026, in addition to higher payroll taxes and rising operating costs.
Frazer Callingham, managing director of Starboard Hotels, said the contrast with Northern Ireland could not be greater.
“Following an outcry in hotels and pubs across Northern Ireland, the price reassessment process has been halted,” he said. “The UK government must follow suit as many hotels can ill afford a further increase in costs.”
Callingham pointed to the impact on one of the Starboard hotels, where taxable values are expected to rise sharply under the current UK revaluation plan.
“From April 1, 2026, the rateable value of one of our hotels will increase from £250,000 to £780,000,” he said. “This will result in an increase of almost £300,000 per year in interest rates payable. In Northern Ireland, business rates for 2027 will be calculated based on current valuations, meaning any increases will be far smaller.”
He added that the assessment freeze in Northern Ireland gives hospitality businesses time to properly challenge assessments, while in the rest of the UK the transitional relief simply forces operators to adapt to what he described as the “new normal” of permanently higher tariffs and taxes.
“If the UK government does not stop the reassessment process, it should at least extend business rates relief to the entire hotel industry, not just pubs and live music venues,” Callingham said. “Hotels and other hospitality businesses have been specifically excluded despite facing the same pressures.”
Tax experts have confirmed these concerns. Darsh Shah, partner at Blick Rothenberg, said recent government comments suggesting pubs had a different situation to the rest of the hospitality sector were deeply flawed.
“Rachel Reeves’ comment that ‘the situation facing pubs is different to that of other parts of the hospitality sector’ is beyond ridiculous,” Shah said. “Hotels are facing the largest average increase in business rates across the sector.”
Shah argued that a comprehensive tariff relief package for the entire hospitality sector should be considered, warning that the industry risks long-term decline if policies do not change.
“The hospitality sector is the seventh largest in the UK by number of registered businesses,” he said. “At this rate, this government will be responsible for its long-term decline. I wouldn’t be surprised to see it fall out of the top ten sectors entirely in the future.”
While pubs are set to benefit from a £100 million annual support package until 2029, Shah said the support alone would not be enough to stabilize the sector and predicted further policy U-turns following the publication of last autumn’s Budget.
The calls come as hotels continue to warn that rising business rates, employers’ national insurance contributions and wage costs are creating a severe financial squeeze, threatening investment, jobs and the viability of properties across the UK.
