UK reviews business rates calculation for pubs and hotels
The Treasury appoints expert Jerry Schurder to lead a review into business rates valuations for pubs and hotels in England and Wales, reporting by March 2027.
Stock photo for illustration only, not from the actual event
- The UK Treasury has launched a review into how business rates are calculated for pubs and hotels in England and Wales.
- Business rates expert Jerry Schurder has been appointed to lead the rate valuation review.
- A final report with findings and recommendations is expected to be delivered in March 2027 ahead of the 2029 revaluation.
- The British Beer and Pub Association reported 161 pub closures across England, Scotland, and Wales in the first three months of the year.
The UK government has initiated a comprehensive review examining how business rates are calculated for pubs and hotels across England and Wales, a move that could potentially pave the way for broader system reforms.
The Treasury announced that business rates expert Jerry Schurder will spearhead the review into rate valuations, with a mandate to report back by March 2027. Officials are actively seeking input from landlords, hoteliers, and business owners to help inform the ongoing evaluation process.
Stock photo for illustration only, not from the actual event
The announcement follows last month's move by Andy Burnham, who announced a 20% reduction in business rates for pubs, social clubs, and live music venues in England starting in April. While pub representative groups have long contended they face disproportionately high tax bills, other commercial sectors have similarly lobbied for a wholesale overhaul of the rating system.
According to figures from the British Beer and Pub Association (BBPA), 161 pubs shut down during the first three months of the year across England, Scotland, and Wales, resulting in the loss of approximately 2,400 jobs. Rising business rates are frequently highlighted as a core pressure on the hospitality sector, compounded by complaints over escalating staff expenses driven by increases in the minimum wage and National Insurance contributions.
"For years pubs have paid a disproportionately higher business rates bill which has ground down their ability to keep the doors open, so this review is sorely needed and hugely welcome."
Emma McClarkin, BBPA
Emma McClarkin, chief executive of the BBPA, noted that pubs have shouldered disproportionately high business rates bills for years, which has severely eroded their financial viability, making the newly announced review both necessary and deeply welcome.
The UK Treasury's decision to re-examine valuation methodologies highlights structural tensions within the commercial property tax framework. Unlike traditional retail properties, pubs in England and Wales are assessed using a Fair Maintainable Trade metric, meaning their rateable values rise alongside their turnover. This sensitivity can intensify financial distress during periods of broader economic headwinds.
James Murray, financial secretary to the Treasury, stated that the review will focus on rethinking valuations to construct a fairer framework moving forward. Schurder's findings will ultimately feed directly into the next scheduled business rates revaluation in 2029.
Source: BBC Business
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