A review has been launched into the method of calculating business rates for pubs and hotels across England and Wales. The Treasury has appointed business rates expert Jerry Schurder to lead the review, which is expected to report back in March 2027.
The government is seeking input from landlords, hoteliers, and business owners for the process. Pub groups have consistently argued that they face disproportionately high rates bills, with the British Beer and Pub Association (BBPA) stating that pubs are valued based on Fair Maintainable Trade, meaning rates increase with turnover.
This review follows a 20% cut in business rates for pubs, social clubs, and live music venues in England, announced last month by Andy Burnham, which is set to take effect in April. The BBPA reported that 161 pubs closed in England, Scotland, and Wales during the first three months of this year, resulting in approximately 2,400 job losses.
James Murray, Financial Secretary to the Treasury, stated the review aims for "a rethink of valuations - so that we can build a fairer system for the future." Emma McClarkin, chief executive of the BBPA, welcomed the review, highlighting the long-standing issue of pubs paying disproportionately high business rates.