HM Treasury’s headquarters will enjoy a nearly £290,000 cut to its business rates bill next financial year, even as the department implements tax changes set to hammer thousands of British pubs with substantially higher charges.
The reduction stems from a lower multiplier applied to rate calculations.
The Treasury building at 1 Horse Guards Road will pay £9.62million in 2026/27, despite a four per cent rise in its property valuation, according to Government data analysed by tax specialists at Ryan.
Meanwhile, pubs across Britain face mounting bills after VOA figures revealed their rateable values jumped by 32 per cent under the new property assessments.
During November’s budget, the Chancellor declared that business rates would become “permanently lower” for smaller retail, hospitality and leisure operators, though industry leaders have disputed this claim over recent months.
The Government lowered the multiplier for calculating property taxes but simultaneously confirmed that a 40 per cent relief scheme for hospitality, retail and leisure businesses would cease from April.
Replacement transition relief measures have been announced, though these will be gradually withdrawn until they disappear entirely by April 2029.
Fresh property valuations introduced for 2026 produced sharp increases in assessed values for hospitality venues, with pubs and hotels seeing particularly steep rises.
The Chancellor declared that business rates would become “permanently lower” for smaller retail
|
GETTY
Trade bodies and business leaders have criticised the Government, warning that the tax alterations could force venues to close and trigger widespread redundancies throughout the country.
Ministers have signalled that additional financial assistance for pubs will be unveiled within the coming weeks as they respond to mounting pressure from the sector.
Rachel Reeves told reporters at the World Economic Forum on Wednesday: “The situation the pubs face is different from other parts of the hospitality sector but we will be setting out the detail in the next few days.”
Hotels, however, remain anxious about their prospects, with operators issuing renewed appeals for help amid concerns they may be excluded from any forthcoming relief package.
Tax experts anticipate that numerous other office buildings will also face higher business rates as part of the broader overhaul
|
PAThe broader hospitality industry continues to press for clarity on support measures as the April deadline approaches.
Tax experts anticipate that numerous other office buildings will also face higher business rates as part of the broader overhaul.
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, said: “Across the seven principal Central London office districts, an 11.9 per cent rise in rateable values generates £607.9 million of additional rateable value.
Ministers have signalled that additional financial assistance for pubs will be unveiled within the coming weeks
|
PA“Even after lower multipliers and transitional relief, that still results in a £78.7million increase in business rates liabilities in 2026/27 once supplements are taken into account.”
A Treasury official confirmed the limited brief of the upcoming U-turn, telling the Financial Times: “this package is for pubs”.
They insisted, however, that the Government would continue to listen to the concerns of the wider sector.
On the issue of business rates, a Treasury spokesperson said: “Property valuations for business rates are calculated independently by the Valuation Office Agency. HM Treasury will be paying a higher multiplier next year to help fund a lower rate for the high street, as part of the Government’s commitment to rebalance the business rates system.”
