Government vows to make business rate valuations for pubs and hotels fairer

The government has pledged to make business rate valuations for pubs and hotels in England and Wales more equitable, as the hospitality sector faces mounting challenges. An independent review, led by Jerry Schurder, will examine ways to improve the system ahead of the next revaluation in 2029. Andy Burnham, the Shadow Secretary of State for Communities and Local Government, has already announced a 20% reduction in business rates for pubs, social clubs and live music venues in England from April next year.

This follows growing calls from the industry to reduce the tax burden on hospitality businesses, which have been struggling with higher energy and food bills, as well as the impact of pandemic-era relief measures ending. The review, set to report to the Treasury by March 2027, will consider valuations prior to the 2029 revaluation date.

James Murray, the Financial Secretary to the Treasury, emphasized the importance of pubs and hotels to communities and the need for a "rethink of valuations" to create a fairer system for the future. UKHospitality's chief executive, Allen Simpson, welcomed the move, stating that the system should better reflect the trading realities for the sector, which continues to bear a significant burden from business rates.

The British Beer & Pub Association's CEO, Emma McClarkin, welcomed the review, noting that pubs have long been disproportionately affected by high business rates bills, contributing to the closure of two pubs a day across the UK this year. While cuts have been welcomed by business owners, the industry has consistently called for comprehensive reform of the business rates system.

The government, under pressure to address the plight of struggling pubs, clubs and live music venues, has also been urged to extend the existing business rates relief to bookshops.