The government has announced a review of the business rates system in a bid to make pub and hotel valuations fairer.
Business rates expert Jerry Schurder will lead the independent review and report back to the Treasury by the end of March 2027. His recommendations can then be implemented at the next revaluation.
A call for evidence, also launched today, will ensure landlords, brewers, hoteliers, and business owners are properly represented in the process.
“Pubs and hotels are vital for communities and bringing growth to every postcode,” said financial secretary to the Treasury, James Murray MP.
“Last month we announced tax cuts for pubs to give them the breathing room they need. Today, we’re going further, with a rethink of valuations, so that we can build a fairer system for the future.”
Jerry Schurder added: “I look forward to hearing from businesses, representative bodies, and valuation professionals as we assess how the current valuation methodologies for pubs and hotels operate in practice, and whether they remain fit for purpose. Stakeholder evidence and engagement will be central to informing the review’s recommendations.”
Last month, the government cut business rates for pubs, social clubs, and live music venues by a further 20% from April next year. This 20% cut will be fully funded, says the government, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.
This is on top of a cut of 15% on pubs’ and live music venues’ business rates bills, brought in from April this year, followed by a two-year real-terms freeze. This saves the average pub an additional £1,650 in 2026/27, with around 75% of pubs seeing their bills fall or stay flat over the same year.
Allen Simpson, chief executive of UKHospitality, said: “I’m pleased that the government is looking seriously at the valuation methodology for pubs and hotels. Business rates remain a significant burden for hospitality businesses and the system needs to better reflect the trading realities for the sector.
“Comprehensive review and reform can address these challenges, while also supporting investment and growth. I look forward to working with the government on the review and to provide evidence from across the hospitality sector.”
Emma McClarkin, chief executive of the British Beer and Pub Association, added: “For years, pubs have paid a disproportionately higher business rates bill, which has ground down their ability to keep the doors open, so this review is sorely needed and hugely welcome.
“We’re looking forward to working with government to fix the long-standing unfairness in the sector and ensuring the methodology for valuing pubs delivers results that are transparent, predictable, and fair.
“This will build on the prime minister’s strong backing of pubs through his further reduction of business rates, and we’ll continue to work with his team so the local can maintain its rightful place as the heart of the community and high street.”
• Responses to the review should be submitted to PubsHotels.Valuation@hmtreasury.gov.uk by Friday, 16th October, 2026.
