The UK Government has launched an independent review of business rates valuations for pubs and hotels.
The Treasury ordered the review after the two sectors saw a sharp rise in rateable value at the 2026 revaluation, which indicated that the current system “does not reflect the realities of the pub and hotel market”.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The rises were largely linked to the removal of valuation approaches introduced during the Covid-19 pandemic.
According to a government statement, the review would examine the valuation methods with a focus on improving fairness and transparency and giving operators more certainty when planning investment and staffing.
Business rates specialist Jerry Schurder will lead the review. He is due to submit recommendations to HM Treasury by the end of March 2027, ahead of the next revaluation.
The government has also opened a call for evidence, inviting submissions from landlords, brewers, hoteliers, and business owners. The process is intended to gather industry views on the operation of the current system.
Financial Secretary to the Treasury James Murray said: “Pubs and hotels are vital for communities and bringing growth to every postcode.
“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.”
The review follows other business-rates measures announced by the government.
Last month, it said business rates for pubs, social clubs, and live music venues would be reduced by a further 20% from April next year.
It followed a 15% reduction in business rates bills for pubs and live music venues introduced from April this year, as well as a two-year real-terms freeze.
“This meant saving the average pub an additional £1,650 in 2026/2027 with around 75% of pubs seeing their bills fall or stay flat over the same year,” the statement added.
