Treasury launches review in bid reform hospitality business rates

The Treasury has initiated a review to potentially reform the business rates system for pubs and hotels, aiming to enhance fairness, transparency, and future planning for businesses in the hospitality sector. The government announced this on Monday, stating that the review will focus on improving fairness for businesses and working with them to ensure the system is equitable and clear.

A call for evidence has been issued to landlords, brewers, hoteliers, and business owners to provide input on the existing system. This initiative follows a £100 million commitment announced in July, aimed at reducing business rates for pubs, clubs, and venues effective from April of the following year. The funding for this commitment will come from measures targeting businesses that do not contribute positively to local communities, such as vape shops.

The government plans to include further reforms, such as small business rates relief, in the upcoming autumn budget. James Murray, the financial secretary to the Treasury, emphasized the importance of pubs and hotels to communities and economic growth, stating, "Business rates guru" Jerry Schruder has been appointed to lead this independent review and is expected to deliver recommendations by the end of March 2027.

Schruder, with prior experience as a business rates policy lead at Newmark UK, plans to evaluate the current valuation methods for pubs and hotels and determine if they are still appropriate. Stakeholder feedback and engagement will be crucial in shaping the review's recommendations.