Business rates for pubs and hotels across England and Wales could be overhauled under a new review launched by the Treasury today (24 August) to create a fairer commercial property tax system.
Jerry Schurder, business rates specialist, will lead the assessment into property valuations and report back in March 2027. Ministers are inviting feedback from hoteliers, landlords and commercial property owners to shape the upcoming recommendations.
The announcement follows a 20% business rates reduction for live music venues, social clubs and pubs in England, set to take effect in April 2027. Sector leaders argue current assessments burden public houses with disproportionately higher bills compared with other commercial ventures.
According to data from the British Beer and Pub Association (BBPA), 161 public houses closed across England, Scotland and Wales during the first quarter of this year, leading to 2,400 job losses.
Rising tax bills, alongside increased statutory minimum wage rates and higher National Insurance contributions, have escalated operational expenditure for venue operators across the sector.
The review will focus on valuation methods and feed into the 2029 revaluation process. England and Wales operate under the same framework, whereas Scotland and Northern Ireland maintain separate rating systems.
Under previous Treasury policies, pandemic-era tax relief was set to end entirely by April, which – combined with rising property valuations – threatened sharp cost increases for premises. In response, ministers introduced a 15% discount for pubs and music venues earlier in 2026, with the latest 20% discount offering further support.
Further eligibility criteria regarding the relief will be detailed in the upcoming autumn Budget presented by chancellor John Healey.
Allen Simpson, chief executive of UKHospitality, said: “I’m pleased the government is looking seriously at the valuation methodology for pubs and hotels. When you have rateable values doubling or tripling at a revaluation, that is the clearest sign yet that the system is broken and in need of proper reform.
“I look forward to working with the Government to provide evidence from across hospitality to support this review and its wider work to address the damage done to the sector over the past two years.”
Esther Wood, partner at Goodman Jones, added: “Business rates are becoming an increasingly acute issue for pubs, with operators facing higher bills at the same time as relief is being scaled back, putting further pressure on businesses where margins are already extremely tight. Pubs are particularly exposed because rates are tied to the premises and their trading potential, rather than simply the profit the business ultimately makes.
“While pubs cannot control rising business rates, they can take steps to mitigate the impact by reviewing their eligibility for reliefs, challenging inaccurate valuations, tightening cost controls and ensuring they have up-to-date financial information to support decision-making.”
Business rates for pubs and hotels across England and Wales could be overhauled under a new review launched by the Treasury today (24 August) to create a fairer commercial property tax system.
Jerry Schurder, business rates specialist, will lead the assessment into property valuations and report back in March 2027. Ministers are inviting feedback from hoteliers, landlords and commercial property owners to shape the upcoming recommendations.
The announcement follows a 20% business rates reduction for live music venues, social clubs and pubs in England, set to take effect in April 2027. Sector leaders argue current assessments burden public houses with disproportionately higher bills compared with other commercial ventures.
According to data from the British Beer and Pub Association (BBPA), 161 public houses closed across England, Scotland and Wales during the first quarter of this year, leading to 2,400 job losses.
Rising tax bills, alongside increased statutory minimum wage rates and higher National Insurance contributions, have escalated operational expenditure for venue operators across the sector.
The review will focus on valuation methods and feed into the 2029 revaluation process. England and Wales operate under the same framework, whereas Scotland and Northern Ireland maintain separate rating systems.
Under previous Treasury policies, pandemic-era tax relief was set to end entirely by April, which – combined with rising property valuations – threatened sharp cost increases for premises. In response, ministers introduced a 15% discount for pubs and music venues earlier in 2026, with the latest 20% discount offering further support.
Further eligibility criteria regarding the relief will be detailed in the upcoming autumn Budget presented by chancellor John Healey.
Allen Simpson, chief executive of UKHospitality, said: “I’m pleased the government is looking seriously at the valuation methodology for pubs and hotels. When you have rateable values doubling or tripling at a revaluation, that is the clearest sign yet that the system is broken and in need of proper reform.
“I look forward to working with the Government to provide evidence from across hospitality to support this review and its wider work to address the damage done to the sector over the past two years.”
Esther Wood, partner at Goodman Jones, added: “Business rates are becoming an increasingly acute issue for pubs, with operators facing higher bills at the same time as relief is being scaled back, putting further pressure on businesses where margins are already extremely tight. Pubs are particularly exposed because rates are tied to the premises and their trading potential, rather than simply the profit the business ultimately makes.
“While pubs cannot control rising business rates, they can take steps to mitigate the impact by reviewing their eligibility for reliefs, challenging inaccurate valuations, tightening cost controls and ensuring they have up-to-date financial information to support decision-making.”
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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