UK government launches review of pub and hotel business rates

The UK government has commissioned a review into how business rates are calculated for pubs and hotels in England and Wales. The review, led by business rates expert Jerry Schurder, aims to improve fairness and transparency in the valuation system. Schurder is expected to report his findings to the Treasury by March 2027, with recommendations potentially implemented during the next revaluation in April 2029.

Currently, pubs and hotels are valued using a turnover-based method known as ‘Fair Maintainable Trade,’ whereas other businesses like restaurants and cafes are measured on a rental basis. Industry representatives, including the British Beer and Pub Association (BBPA), have argued that this system is disproportionate, as rising turnover leads to higher rates bills. The sector has faced significant pressure, with the BBPA reporting 161 pub closures in the first three months of this year, resulting in approximately 2,400 job losses.

The review follows previous government actions, including a 20% cut in business rates for pubs, social clubs, and live music venues in England scheduled for April. Hospitality businesses continue to cite rising costs from National Insurance and minimum wage increases as significant challenges to their operations.