Treasury launches review to overhaul business rates system for pubs and hotels

The Treasury has announced a wide‑ranging review of how pubs and hotels are valued for business rates, signalling a move to reduce uncertainty and create a fairer system for venues across the UK. The decision follows sharp increases in rateable values at the 2026 revaluation, driven largely by the end of pandemic‑era valuation methods.

Financial Secretary to the Treasury James Murray said the current approach no longer reflects market realities and confirmed that the government intends to deliver a more transparent and predictable framework. The review will be led by business‑rates specialist Jerry Schurder, who is expected to report back by March 2027 so that recommendations can be implemented at the next revaluation cycle.

A formal Call for Evidence has been launched to gather input from landlords, brewers, hoteliers and other operators. Ministers say this will ensure businesses are properly represented and able to shape reforms aimed at improving long‑term stability.

The announcement builds on recent government measures, including a further 20% cut to business‑rates bills for pubs, social clubs and live music venues from April 2027. This reduction will be fully funded, partly through reviewing reliefs for businesses that do not contribute positively to local communities. It follows earlier support introduced in April 2026, including a 15% cut and a two‑year real‑terms freeze, which the Treasury says saved the average pub around £1,650 in 2026/27.

Industry bodies have broadly welcomed the review. UKHospitality said the valuation system remains a significant burden and needs to better reflect trading conditions. The British Beer and Pub Association described the move as “sorely needed”, arguing that pubs have long faced disproportionate bills. Greene King and Marriott International also backed the review, highlighting the need for modernisation after decades of limited change.

The government says the review is part of a wider commitment to support high streets, reduce costs for businesses and improve the overall business‑rates framework ahead of the next revaluation in 2029. Responses to the Call for Evidence are invited by 16 October 2026.