Pub and hotel valuations will be made fairer as the government takes a further step to back the businesses that help drive growth in every postcode.
Both the pubs and hotels sectors saw significant increases in rateable value at the 2026 revaluation in large part due to the ending of pandemic-era valuations. People are concerned that the current system does not reflect the realities of the pub and hotel market.
The new review launched on 24 August 2026, will look at improving fairness for businesses working with them to ensure the system is fair and transparent, and ensure pubs and hotels can plan better for the future.
Leading business rates expert Jerry Schurder will lead the independent review and report back to the Treasury by the end of March 2027 – in time for his recommendations to be implemented at the next revaluation.
A Call for Evidence, also launched today, will ensure landlords, brewers, hoteliers and business owners are properly represented in the process. This will ensure the views of businesses are heard. This follows government listening to business about the way the current system works.
Financial Secretary to the Treasury, James Murray MP, 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.”
Jerry Schurder, Independent Reviewer, said:
“I look forward to hearing from businesses, representative bodies and valuation professionals as we assess how the current valuation methodologies for pubs and hotels operate in practice and whether they remain fit for purpose. Stakeholder evidence and engagement will be central to informing the review's recommendations.”
In his first week in office, the Prime Minister put a new offer on the table for Britain's job creators focused on greater certainty, clearer long-term direction, faster decision-making and a stronger business voice in shaping policy.
This government will act as a circuit breaker, bringing down costs for businesses and removing barriers so they can focus on growing and creating jobs.
Last month the government cut business rates for pubs, social clubs and live music venues by a further 20% from April next year to help reduce the burden on local businesses and help communities thrive.
This 20% cut will be fully funded, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.
This is on top of a cut of by 15% on pubs and live music venues' business rates bills, brought in from April this year, followed by a two-year real-terms freeze. This meant saving the average pub an additional £1,650 in 2026/27 with around 75% of pubs seeing their bills fall or stay flat over the same year.
This is just the latest step of the government's plans to back our communities and high streets and make good on the commitment to improve the wider business rates system, including Small Business Rates Relief, at the Budget.
Stakeholder responses:
Allen Simpson, Chief Executive, UK Hospitality, said:
“I'm pleased that the Government is 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.
“Comprehensive review and reform can address these challenges, while also supporting investment and growth. I look forward to working with the Government on the review and to provide evidence from across the hospitality sector.”
Emma McClarkin, Chief Executive, British Beer and 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.
“We're looking forward to working with government to fix the long-standing unfairness in the sector and ensuring the methodology for valuing pubs delivers results that are transparent, predictable, and fair.
“This will build on the Prime Minister's strong backing of pubs through his further reduction of business rates, and we'll continue to work with his team so the local can maintain its rightful place as the heart of the community and high street.”
Nick Mackenzie, Greene King CEO, said:
“Pubs have found themselves paying increasingly disproportionate business rates bills in recent years and so we welcome this independent review. Fundamental reform is urgently needed as the current system has barely changed in three decades and overlooks how markets and customer habits have altered since the 1990s. We are ready to support the review and urge publicans and hoteliers to submit evidence so long-needed reform can finally happen.”
Neal Jones, President, EMEA, Marriott International said:
“We welcome the Government's commitment to reviewing hotel business rates valuations and pursuing long-term reform. 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. We look forward to engaging with the review, understanding more about its scope and contributing evidence that supports a sustainable and competitive hotel sector capable of driving jobs, investment and growth across the UK.”
