The government has asked a business rates expert to review how the business rates valuations system can be made fairer for pubs and hotels.
Pubs and hotels saw significant increases in rateable value in the April 2026 revaluation, but business owners say the current system does not reflect the current realities of the market.
Pubs and hotels are valued for business rates using a turnover based method, unlike other businesses, such as restaurants and cafes, which are measured on a rental basis.
Jerry Schurder, former head of business rates at property consultancy Newmark, will investigate how the system can be reformed. He will report back to the Treasury by the end of March 2027 with his recommendations implemented at the next revaluation on 1 April 2029.
A consultation is also being launched today which landlords, brewers, hoteliers and business owners are encouraged to respond to.
Earlier this year, prime minister Andy Burnham announced business rates for pubs, social clubs and live music venues in England will be cut by a further 20% from April next year.
It follows a 15% reduction on pubs and live music venues’ rates bills from April this year.
That was introduced after strong criticism that changes announced in the 2025 Autumn Budget would lead to company closures due to increased costs after a Covid-era discount for retail, leisure and hospitality firms was removed and properties were revalued.
As well as business rates, hospitality firms say they are struggling to cope with other costs including increases to employers’ National Insurance and a rise in the minimum wage.
Restaurants and cafes are not covered by the latest review, but they also report challenges.
Chef Tom Kerridge, who is leading a campaign to cut VAT for hospitality to 10%, said the government is getting business taxation “very, very wrong, while Yotam Ottolengh, who runs 11 hospitality firms, said the situation is “crippling” for the sector.