What’s Happened
Several UK MPs — especially on the Culture, Media and Sport (CMS) Committee — have expressed serious concerns that planned business rates reforms could disproportionately harm cinemas and other cultural and entertainment venues. Their warnings centre on the fact that changes announced in the latest Budget (effective from April 2026) will reduce some pandemic‑era reliefs and increase net property taxes, with potentially severe financial implications. (Screen Daily)
The CMS Committee has formally written to Chancellor Rachel Reeves urging clarity, further support, and publication of the Treasury’s impact analysis — noting that cinemas, grassroots music venues and similar businesses are vital parts of local economies but are at risk under the current proposals. (archive.vn)
Case Studies & Sector Impact
Independent Cinemas
Independent and smaller cinema chains (distinct from large multiplex operators) often operate on thin margins, driven by ticket sales, concessions and community events rather than blockbuster box‑office alone.
Key pressures include:
- Loss of enhanced business rates relief — pandemic‑era exemptions are being scaled back or removed, increasing fixed cost bases.
- Rateable values tied to property rental values rather than actual profitability, meaning higher liabilities even if footfall or earnings are down.
- Competing in a market already squeezed by streaming services and variable attendance patterns.
MPs specifically noted these cinemas alongside grassroots music venues as enterprises that “are already struggling for survival” and could be pushed “over the edge” without clarification of business rates support. (Screen Daily)
CCS Committee Example
In an official letter, Dame Caroline Dinenage MP, Chair of the CMS Committee, highlighted concerns that rate changes would have a “disproportionate effect on hospitality and leisure premises… despite such businesses being a vital part of communities.” The committee specifically named cinemas in this category when pressing the Treasury to explain its assumptions and timeline for promised alternative support. (Screen Daily)
Comments & Official Responses
MPs & Politicians
Caroline Dinenage (CMS Committee Chair):
“Venues, clubs and cinemas… are already struggling for survival. Instead of support, this reform risks pushing many over the edge.” — calling for more detail on the government’s impact modelling and clearer support commitments. (archive.vn)
Other MPs across parties have also pressed the Chancellor to extend business rates relief beyond pubs (which have recently been singled out for support) to include hotels, restaurants and cultural venues such as cinemas, theatres and grassroots entertainment spaces — many of which face even steeper rises. (The Times)
Industry & Sector Reaction
Hospitality & Entertainment Sector Leaders
Industry bodies — including UKHospitality and local high‑street alliances — have warned that piecemeal reliefs (e.g., targeted at pubs) do not address fundamental systemic issues in the business rates regime. They argue rising rates could:
- Push up ticket prices to maintain viability, hurting demand.
- Force closures of smaller venues that cannot absorb higher property taxes.
- Reduce investment in cultural and arts spaces that are core to community life.
One campaign group noted that the experience economy — including cinemas, theatres, galleries and related venues — faces disproportionate burdens because the current system still heavily taxes physical premises while digital firms pay comparatively less. (Heart of London Business Alliance)
Why This Matters
Business Rates Basics
Business rates in the UK are a property tax based on rateable value (estimated open market rental value), not directly on profitability. Recent revaluations and withdrawal of temporary pandemic reliefs mean many operators face higher bills from April 2026. While some retail/hospitality/leisure properties get slightly lower multipliers, the change still represents a significant overall cost increase in many cases. (GOV.UK)
Cultural & Local Economy Effects
Cinemas are often anchors of high streets and town centres, driving footfall to nearby cafes, restaurants and shops. MPs and sector representatives argue that without tailored protection or phased support, these venues could:
- Reduce programming or close screens.
- Push up prices for consumers.
- Undermine local night‑time economies and community culture.
The CMS Committee’s letter characterises these risks as urgent and real, pressing the Treasury for answers ahead of rate changes taking effect. (archive.vn)
Key Takeaways
MPs have formally warned that planned business rate reforms could disproportionately harm cinemas and other entertainment venues, urging clearer government support and transparency. (archive.vn)
Independent cinemas and community venues are cited as especially vulnerable, given slim margins and rising fixed costs. (Screen Daily) Politicians and industry bodies say targeted support must extend beyond pubs to protect cultural and local economy pillars. (The Times)
Study groups and alliances stress that broader reform of business rates is needed to prevent closures and maintain vibrant high streets. (Heart of London Business Alliance)
Here’s a detailed briefing on how MPs are warning that the cinema sector — along with other cultural and hospitality businesses — could be put at risk by recent business rates reform in the UK, including case studies, comments, and context:
What the MPs Are Warning About
In early January 2026, the UK Parliament’s Culture, Media and Sport (CMS) Committee wrote to Chancellor Rachel Reeves expressing serious concerns over how business rates reform announced in last year’s Budget will affect cinemas and similar venues.
- The letter, led by the CMS Committee Chair Dame Caroline Dinenage MP, argues the changes could disproportionately burden cinemas and other entertainment venues precisely at a time when many are struggling financially. (UK Parliament Committees)
- MPs have demanded more transparency from the Treasury on the analysis behind the proposals and clarity on promised support for the sector. (archive.vn)
Dinenage stated that cinemas, music venues, and clubs are vital to high streets and community life, and without adequate backing, reforms could push many over the edge. (archive.vn)
Sector Case Study: UK Cinemas
Pre‑Reform Challenges
Even before the latest business rates changes, UK cinemas were in a precarious position:
- A Parliamentary research report (late 2025) found that independent cinema operators were under serious strain, with many describing their situation as the most precarious in decades. (Parliament Publications)
- Survey data showed that around half of independent venues said they required additional support just to stay open. (Parliament Publications)
- Nearly 10% fewer cinemas existed in 2024 compared with 2019, with independent venues accounting for a large share of that decline. (Parliament Publications)
This backdrop makes new tax burdens more threatening — cinemas lost significant box‑office revenue and ancillary sales during the pandemic and have yet to fully recover. (Parliament Publications)
Business Rates Impact
Under the 2025 Budget reforms:
- The government scaled back business rates relief that had been available during and after the pandemic, reducing it from around 75% to 40% and then planning to phase that out entirely from April 2026. (Screen Daily)
- This means that many entertainment and hospitality venues could face substantially higher effective tax bills just as demand and revenue remain subdued, placing further financial pressure on their operations. (Screen Daily)
Broader Hospitality Context
While the MPs’ letter focuses on cultural and entertainment venues, similar concerns have been raised across the hospitality sector:
- Pubs and hotels have warned of dramatic business rates increases, with some estimates of bill rises into the tens of millions collectively and predictions of closures if relief isn’t enhanced. (Credit Connect)
- Industry bodies like UKHospitality have argued that the latest reforms may accelerate distress rather than alleviate it, noting that many small venues could see bills rise substantially over the next few years. (Credit Connect)
This cross‑sector strain has led MPs representing a wide range of hospitality and cultural interests to push for a fairer, more supportive business rates regime. (UK Parliament Committees)
Comments from MPs and Industry Figures
MPs’ Views
- Dame Caroline Dinenage MP (CMS Committee Chair):
Warned that business rate changes “risk pushing many [venues] over the edge,” urging the Treasury to release analysis and clarify support measures. (archive.vn)
Industry Reaction (Hospitality/Culture)
While specific cinema organization comments were not widely quoted in the parliamentary statement, industry trade bodies have broadly warned:
- That reduced relief and rising rates are catching businesses in a cost squeeze, jeopardising jobs and local cultural infrastructure. (Credit Connect)
- That the ongoing revaluation and withdrawal of pandemic‑era support have left many venues exposed to rapidly increasing property taxes with limited commercial cushion. (Credit Connect)
What Happens Next?
- The CMS Committee’s letter puts political pressure on the Treasury to reconsider or at least clarify how the reforms will be implemented and what targeted help may be made available. (UK Parliament Committees)
- Chancellor Reeves and government ministers are expected to respond to these concerns as part of ongoing budget implementation negotiations.