Business Rate Valuations Fairer for Pubs and Hotels 2026

The UK government has promised to make business rate valuations fairer for pubs and hotels, addressing long-standing concerns from the hospitality sector. This move comes as businesses continue to grapple with high costs and the aftermath of pandemic-era relief ending.

Government's Commitment to Fairer Valuations

The Treasury has announced an independent review of the business rates system in England and Wales, specifically targeting the hospitality industry. The review, led by business rates specialist Jerry Schurder, will report back by the end of March 2027. Its findings will influence valuations ahead of the next revaluation in 2029.

Financial Secretary to the Treasury, James Murray, emphasized that "pubs and hotels are vital for communities and bringing growth to every postcode." He added that a "rethink of valuations" would help "build a fairer system for the future." This commitment signals a significant shift in policy direction.

Why This Matters for the Hospitality Sector

The hospitality industry has been hit hard by rising business rates, energy bills, and food costs. Many pubs and hotels saw their rates increase substantially this year after new valuations took effect and pandemic-era relief ended. The government's review aims to address these disparities.

The move follows a separate announcement by Andy Burnham, the Mayor of Greater Manchester, who plans to cut business rates for pubs, social clubs, and live music venues in his region by 20% starting next April. This local initiative highlights the growing pressure on the government to act nationally.

Key Takeaways from the Announcement

• Independent review led by Jerry Schurder to improve business rate valuations.
• Focus on pubs, hotels, and other hospitality venues.
• Report due by March 2027, ahead of the 2029 revaluation.
• Existing 2023 valuations remain unaffected.
• UKHospitality welcomes the review as a positive step.

Impact on Business Rates: A Comparison

Industry Reaction

Allen Simpson, chief executive of UKHospitality, welcomed the announcement, stating it was positive that the government is taking the issue seriously. However, he stressed that immediate action is needed to support businesses struggling now.

The review will consider how valuations are calculated, potentially moving away from a one-size-fits-all approach. This could lead to a system that better reflects the unique challenges faced by pubs and hotels, such as seasonal trade and location-specific factors.

What This Means for Business Owners

For pub and hotel owners, this review offers hope for a more equitable system. However, changes may not take effect until after the next revaluation in 2029. In the meantime, businesses are encouraged to engage with the review process and provide feedback to shape the outcome.

For those looking to appeal their current rates, it's important to note that the 2023 valuations are not affected by this review. Professional advice may be needed to navigate the existing appeals process.

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