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🇬🇧 United Kingdom /Economy & Trade

Government vows fairer business rate valuations for pubs and hotels

From The Guardian · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • The UK government will review business rate valuations for pubs and hotels to ensure fairness.
  • An independent review will examine the system for hospitality venues, which faced higher bills after pandemic relief ended and new revaluations took effect.
  • This comes as some pubs are closing daily due to rising costs and taxes, and calls grow for broader reform.

The UK government has pledged to make business rate valuations fairer for pubs and hotels across England and Wales. This commitment follows increasing pressure to support the struggling hospitality sector, particularly from figures like Andy Burnham, who has advocated for reduced business rates.

Pubs and hotels are vital for communities and bringing growth to every postcode. A rethink of valuations would help build a fairer system for the future.

— James MurrayFinancial Secretary to the Treasury, explaining the government's rationale for the review.

An independent review will be conducted to improve the valuation system for hospitality venues. These businesses were hit with higher business rate bills this year after pandemic-era relief measures concluded and new revaluations were implemented. The review, led by business rates specialist Jerry Schurder, will report to the Treasury by the end of March 2027 and will consider valuations prior to the next revaluation date in 2029. Current valuations from this year will not be affected.

James Murray, the financial secretary to the Treasury, stated that pubs and hotels are essential for communities and economic growth, and a "rethink of valuations" will help "build a fairer system for the future." Industry leaders welcomed the review. Allen Simpson, CEO of UKHospitality, called it positive that the government is seriously examining the methodology, noting that business rates remain a significant burden. Emma McClarkin, CEO of the British Beer & Pub Association, described the review as "sorely needed and hugely welcome," highlighting that pubs have long paid disproportionately high business rates.

It was positive the government was looking seriously at the valuation methodology for pubs and hotels. Business rates remain a significant burden for hospitality businesses, and the system needs to better reflect the trading realities for the sector.

— Allen SimpsonChief Executive of UKHospitality, commenting on the government's review.

Despite these measures, the industry continues to face significant challenges. Estimates suggest that around two pubs are closing daily in Britain this year, impacted by increased taxes, wages, energy, and food costs. The sector has repeatedly called for a complete reform of the business rates system. Additionally, there are calls to extend business rates relief, currently aimed at pubs, clubs, and music venues, to include bookshops, following an open letter signed by 234 independent booksellers.

The review was sorely needed and hugely welcome as pubs had for years paid a disproportionately higher business rates bill which has ground down their ability to keep the doors open.

— Emma McClarkinChief Executive of the British Beer & Pub Association, on the necessity of the review.
DistantNews Editorial

Originally published by The Guardian in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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