Andy Burnham's government has confirmed a review of pub and hotel business rates, with the aim of making the "future system" "fairer". The announcement, made on August 24, will see an independent review led by business rates expert Jerry Schurder, who will report back to the Treasury by the end of March 2027.
The government press release states that the review will "improve fairness for businesses working with them to ensure the system is fair and transparent, and ensure pubs and hotels can plan better for the future". This follows last month's announcement of tax cuts for pubs, according to Financial Secretary to the Treasury, James Murray MP.
Government and industry reaction
James Murray MP said in a statement: "Pubs and hotels are vital for communities and bringing growth to every postcode. Last month we announced tax cuts for pubs to give them the breathing room they need. Today we’re going further with a rethink of valuations - so that we can build a fairer system for the future."
Jerry Schurder, Independent Reviewer, said: "I look forward to hearing from businesses, representative bodies and valuation professionals as we assess how the current valuation methodologies for pubs and hotels operate in practice and whether they remain fit for purpose. Stakeholder evidence and engagement will be central to informing the review’s recommendations."
Industry leaders respond
Nick Mackenzie, Greene King CEO, said: "Pubs have found themselves paying increasingly disproportionate business rates bills in recent years and so we welcome this independent review. Fundamental reform is urgently needed as the current system has barely changed in three decades and overlooks how markets and customer habits have altered since the 1990s. We are ready to support the review and urge publicans and hoteliers to submit evidence so long-needed reform can finally happen."
Neal Jones, President, EMEA, Marriott International, said: "We welcome the Government’s commitment to reviewing hotel business rates valuations and pursuing long-term reform. The current valuation methodology creates a significant burden for hotels, and it is right that the system is being examined to ensure it is fair, transparent, and reflective of today’s market realities. We look forward to engaging with the review, understanding more about its scope and contributing evidence that supports a sustainable and competitive hotel sector capable of driving jobs, investment and growth across the UK."
The review will now gather evidence from businesses, representative bodies, and valuation professionals, with recommendations expected by the end of March 2027.
