Review launched into how pub and hotel business rates calculated

A comprehensive review into the calculation of business rates for pubs and hotels in England and Wales is underway, potentially leading to a significant reform of the existing system. Treasury-appointed business rates expert Jerry Schurder will head the review, tasked with evaluating current rate valuations and submitting his findings by March 2027. The government is actively soliciting feedback from landlords, hoteliers, and business owners to inform this process.

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a rethink of valuations - so that we can build a fairer system for the future

This initiative follows a recent announcement of a 20% business rates cut for pubs, social clubs, and live music venues in England, effective from April. While pub groups contend they face disproportionately high rate bills, other businesses are advocating for a broader overhaul of the entire rates system. The British Beer and Pub Association (BBPA) reports that 161 pubs closed in the first quarter of this year across England, Scotland, and Wales, resulting in approximately 2,400 job losses. Rising business rates are identified as a key factor, alongside increased staff costs due to higher National Insurance contributions and minimum wage.

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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.

Financial Secretary to the Treasury, James Murray, stated that the review will "rethink valuations... to build a fairer system for the future." Emma McClarkin, CEO of the BBPA, welcomed the review, emphasizing that pubs have long endured higher business rates, hindering their ability to operate. The BBPA notes that pubs are valued differently from retail venues, with their rates based on "Fair Maintainable Trade" rather than just floor area, meaning increased turnover directly leads to higher rates.

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crucial heavyweight business rates expertise into the Treasury

Schurder, formerly of Newmark UK, will feed his review into the 2029 rates revaluation. His appointment has been met with approval from the Federation of Small Businesses (FSB), with Craig Beaumont highlighting Schurder's "crucial heavyweight business rates expertise." However, the FSB also urged the government to address the broader system and increase relief for small businesses. The British Retail Consortium also welcomed the review, stressing the importance of not overlooking retailers' needs. Meanwhile, Shadow Chancellor Sir Mel Stride criticized the review as "far too late," blaming the current government for the sector's struggles, citing "tax hikes" and "job-destroying regulation." Liberal Democrat Treasury spokesperson Daisy Cooper called the reform "long overdue" and urged an emergency VAT cut and a reversal of job tax changes.

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far too late for a sector this Labour government has already done its best to kill off