The Labour government has announced an independent review of business rates for pubs and hotels in England and Wales, with a promise to make valuations fairer for the hospitality sector. The review will report to the Treasury by the end of March 2027, ahead of the next revaluation date in 2029.
Government promises fairer valuations for hospitality
Prime Minister Andy Burnham, who is also the MP for Makerfield, and Chancellor John Healey have pledged to improve the business rates system for hospitality venues across England and Wales. The review will be led by Jerry Schurder, an independent business rates specialist, and will focus on how valuations are calculated for pubs, hotels, and other hospitality businesses.
Last month, Mr Burnham announced that business rates for pubs, social clubs, and live music venues in England would be cut by 20% from April next year. The new review builds on that commitment, aiming to address longer-term concerns about the fairness of the valuation system.
Industry leaders welcome the review
James Murray, the financial secretary to the Treasury, said: “Pubs and hotels are vital for communities and bringing growth to every postcode,” adding that a “rethink of valuations” would help “build a fairer system for the future”.
Allen Simpson, the chief executive of the trade body UKHospitality, said: “Business rates remain a significant burden for hospitality businesses, and the system needs to better reflect the trading realities for the sector.”
Emma McClarkin, the chief executive of the British Beer & Pub Association, described the review as “sorely needed and hugely welcome”, noting that pubs had for years “paid a disproportionately higher business rates bill which has ground down their ability to keep the doors open”.
Tom Ironside from the British Retail Consortium also welcomed the review but said it was “vitally important that the needs of retailers are not overlooked”.
Political responses and calls for further action
Conservative Party Shadow Chancellor Sir Mel Stride criticised the timing of the review, saying it was “far too late for a sector this Labour government has already done its best to kill off”. He added: “Tax hikes on business premises and jobs, alongside job-destroying regulation in the Employment Rights Act, have left many hospitality businesses on the brink.”
Liberal Democrat Treasury spokesperson Daisy Cooper said reform of business rates was “long overdue”, but also called for an emergency VAT cut and a reverse to jobs tax changes “which have hammered hospitality in particular”.
The review is now expected to report back to the Treasury by the end of March 2027, with any changes to be implemented before the next revaluation date in 2029.
