Treasury launches review of business rates for pubs and hotels
A new review seeks to overhaul rate valuations for pubs and hotels, with a £100m fund and evidence call from industry.
Treasury announced on Monday that it will examine the way business rates are calculated for pubs and hotels across the country. The initiative follows a recent 20 per cent reduction in rates for pubs, clubs and venues that will take effect from April next year.
Why the change matters
Business rates represent a significant cost for hospitality venues, especially those in town centres that rely on foot traffic. By targeting the valuation methodology, the government hopes to make the system more transparent and give operators a clearer picture of future expenses.
The review will be funded by a £100 million package, sourced from tighter enforcement on businesses such as vape shops that are deemed to add little to local communities. No 10 said the money will also support broader small‑business relief measures slated for the autumn Budget.
"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," said James Murray, financial secretary to the Treasury.
How the review will work
The Treasury has appointed a "business rates guru", Jerry Schurder, to lead an independent assessment. Schurder, a former business rates policy lead at advisory firm Newmark UK, will examine whether current valuation methods remain fit for purpose and will gather evidence from landlords, brewers, hoteliers and other stakeholders.
Stakeholder evidence will be central to the recommendations, and a formal call for submissions is now open. The review is expected to deliver its findings by the end of March 2027.
Looking ahead
Once the review is complete, the government plans to embed any changes in the upcoming Budget, potentially reshaping the rates landscape for thousands of pubs and hotels. Industry observers suggest that clearer, more predictable rates could encourage investment in town‑centre hospitality, bolstering local economies.
For a broader view of how local‑government reforms are reshaping town centres, see the recent story on mayors gaining planning powers.
