THE TREASURY has launched a review of business rates valuations for pubs and hotels in England and Wales. Business rates expert Jerry Schurder will lead the review and report in March 2027, with his findings feeding into the next rates revaluation in 2029.
The review comes after concerns from the hospitality sector over business rates. The British Beer and Pub Association (BBPA) said 161 pubs closed in the first three months of this year across England, Scotland and Wales, with around 2,400 jobs lost.
James Murray, financial secretary to the Treasury, said the review would consider "a rethink of valuations - so that we can build a fairer system for the future".
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Emma McClarkin, chief executive of the BBPA, said: "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."
Pubs are assessed using Fair Maintainable Trade (FMT), meaning their rates can rise as turnover increases. Jonathan Lawson, chief executive of Butcombe Group, said pubs were effectively being "punished for success".
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Craig Beaumont of the Federation of Small Businesses welcomed the review but called for wider reform. Tom Ironside of the British Retail Consortium said it was "vitally important that the needs of retailers are not overlooked".
Shadow Chancellor Sir Mel Stride called the review "far too late", while Liberal Democrat Treasury spokesperson Daisy Cooper said reform was "long overdue".
15000 pubs shut down since 2000
The government cut rates for pubs and music venues by 15 per cent earlier in 2026. A 20 per cent discount announced in July will apply on top of existing support.
