Pubs and hotels could see business rates reformed after review

A review is being launched into the way business rates are calculated for pubs and hotels in England and Wales, and could lead to a reform of the system.

The Treasury says business rates expert Jerry Schurder will lead the review into rate valuations and report back in March 2027, with the government calling for the views of landlords, hoteliers and business owners to feed in to the process.

Last month, Andy Burnham announced a 20% cut in business rates for pubs , social clubs and live music venues in England, to come into effect in April.

Pub groups have argued they face disproportionately higher rates bills, but other businesses have called for a wider reform of the rates system.

According to the British Beer and Pub Association (BBPA), 161 pubs closed in the first three months of this year across England, Scotland and Wales, equating to the loss of around 2,400 jobs.

Rising business rates are cited as one issue facing the sector, although there have also been complaints that increases in National Insurance and the minimum wage have made staff costs more expensive.

James Murray, financial secretary to the Treasury, said the new review would look at "a rethink of valuations - so that we can build a fairer system for the future".

Emma McClarkin, chief executive of the BBPA, 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."