The UK has launched a review of how pubs and hotels are valued for business rates.
Why it matters: Business rates are a major fixed cost for hospitality operators, shaping margins and investment decisions. Any change to the valuation method could affect the competitiveness of pubs and hotels ahead of the 2029 revaluation.
- The Treasury says the review covers business rates calculations for pubs and hotels in England and Wales.
- Jerry Schurder, a former head of business rates at Gerald Eve, is leading the review and it is due by March 2027.
- The next business rates revaluation for England and Wales is scheduled for April 2029.
- Pubs and live music venues in England are due 15% business rates relief in 2026/27, with an additional 20% cut promised from April 2027.
The UK Treasury has launched a review into how business rates are calculated for pubs and hotels in England and Wales, a move that could feed into the next revaluation cycle in 2029. The review is being led by Jerry Schurder, a business rates expert and former head of business rates at Gerald Eve, and is due to report by March 2027.
The government said the existing methodology is established, but that stakeholders have raised specific concerns about hotel valuations and that it is right to review whether the system accurately reflects the market for these sectors. Official guidance says pubs are valued using fair maintainable turnover, while hotels use profitability-based methods, with business rates tied to estimated rental value measures. HMRC/VOA guidance
The timing matters because the current revaluation for England and Wales took effect on 1 April 2026, and parliamentary briefing material says average rateable values for English public houses and pub restaurants rose by about 30% at that revaluation, while public houses/pub restaurants including lodge rose by about 70%. House of Commons Library briefing
The review comes alongside broader relief measures for hospitality. The government says pubs and live music venues in England will receive a 15% business rates relief in 2026/27, on top of existing support, and has also said it will introduce an additional 20% business rates cut from April 2027. 2026/27 relief guidance Government announcement
Industry groups, including UKHospitality, have argued that business rates are a structural burden on hospitality and say one-third of hospitality businesses are operating at a loss. UKHospitality survey
By the numbers
- 15% - business rates relief for eligible pubs and live music venues in England in 2026/27
- 20% - additional business rates cut promised from April 2027
- March 2027 - deadline for the review's report
Yes, but: The review appears aimed at valuation methodology, not an immediate wholesale rewrite of business rates, and it is unclear how far any changes would go beyond a technical recalibration before 2029.
What's next: The review is due to report by March 2027, ahead of the next scheduled revaluation in April 2029.