Review of UK pub and hotel business rate valuation to launch

The UK Treasury has enlisted an expert to review how business rates are calculated for pubs and hotels and make recommendations for reform of the system.

Jerry Schurder, former business rates policy lead at advisory Newmark UK, will lead the independent review into valuations and report back to the Treasury by the end of March 2027.

The government is also launching a call for evidence from landlords, brewers, hoteliers and business owners.

It comes after a 20% cut to business rates bills was announced to ease cost pressures on pubs, social clubs and live music venues from April next year.

The move was largely welcomed but there were calls to apply the relief to a wider range of businesses and to go further with broader changes to the system.

No 10 has said it will look to set out further reform, including small business rates relief, at the Budget.

Financial Secretary to the Treasury James Murray said: “Pubs and hotels are vital for communities and bringing growth to every postcode.

“Last month we announced tax cuts for pubs to give them the breathing room they need. Today we’re going further with a rethink of valuations – so that we can build a fairer system for the future.”

Emma McClarkin, chief executive of the British Beer & Pub Association, said: “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.”

Neal Jones, EMEA president at Marriott International, said “The current valuation methodology creates a significant burden for hotels, and it is right that the system is being examined to ensure it is fair, transparent, and reflective of today’s market realities.”

Allen Simpson, chief executive at UK Hospitality, said: “Business rates remain a significant burden for hospitality businesses and the system needs to better reflect the trading realities for the sector.

“Comprehensive review and reform can address these challenges, while also supporting investment and growth.”

Braden Saunders, UK Spirits Alliance spokesperson and owner of Battersea-based Doghouse Distillery and Bar said: “The prime minister’s business rates cut for hospitality costs £100 million.

“The excise duty hike at the last budget lost the Treasury nearly the same amount in spirits revenue last year.

“Cut excise duty on spirits, fund the rates cut – it pays for itself. We welcome this review and look forward to engaging.”

Shadow chancellor Mel Stride said the impact of the move, which would see the recommendations implemented at the next 2029 business rates revaluation, would come too late.

He said: “Tax hikes on business premises and jobs, alongside job-destroying regulation in the Employment Rights Act, have left many hospitality businesses on the brink.”

The Conservatives would abolish business rates for tens of thousands of retail, hospitality and leisure businesses, he said.

Liberal Democrat Treasury spokesperson Daisy Cooper said: “This can’t be an excuse for not taking bolder and more urgent action to save our high streets now.

“Fundamental reform of business rates is long overdue, but every day high street businesses are deciding whether they can keep the doors open.”

She urged Labour to take up her party’s plans for an emergency VAT cut to next April, followed by overhauling business rates, removing so-called ghost landlords and reversing changes to employer National Insurance Contributions.

By Helen Corbett, Press Association Political Correspondent

Press Association: Finance

source: PA

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