UK government promises fairer business rate valuations for pubs and hotels

The UK government has promised to make business rate valuations fairer for pubs and hotels in England and Wales, as minister Andy Burnham faces mounting pressure to support the struggling hospitality sector.

An independent review will examine how the valuation system for hospitality venues could be improved. Many businesses in the sector saw sharply higher rates bills this year following the end of pandemic-era relief and the introduction of new property revaluations.

The move follows Burnham's announcement last month that business rates for pubs, social clubs and live music venues in England will be cut by 20% starting next April.

The review will be led by independent business rates specialist Jerry Schurder and must report to the Treasury by the end of March 2027. It will look at valuations ahead of the next revaluation date in 2029, though this year's rate increases will not be affected.

Industry reaction

James Murray, financial secretary to the Treasury, said pubs and hotels were vital to communities and to driving growth across the country, adding that rethinking valuations would help build a fairer system for the future.

Trade body leaders welcomed the review but stressed that the tax burden remains heavy and has long been disproportionate for the sector. Estimates suggest two pubs are closing every day across Britain this year, driven by rising taxes, wages, energy and food costs.

Burnham is also facing calls to extend the relief given to pubs, clubs and live music venues to bookshops. This month, 234 independent booksellers signed an open letter urging the prime minister to give bookshops the same support as other community-focused businesses.

The government has indicated it will announce wider business rates reform, including small business rates relief, at Chancellor John Healey's first budget on 28 October.