Government Launches Review of Pub and Hotel Business Rates Valuations

The Government has announced an independent review of the business rates valuation system for pubs and hotels, following widespread concern that current assessment methods no longer accurately reflect trading conditions across the hospitality sector.

The review, launched today, 24th August 2026, comes in response to significant increases in rateable values at the 2026 revaluation, largely driven by the removal of pandemic-era valuation assumptions. Industry representatives have argued that the current approach can produce results that fail to reflect the realities of operating pubs and hotels in today's market.

Leading business rates specialist Jerry Schurder has been appointed to conduct the independent review and will report his findings to the Treasury by March 2027, allowing any recommended changes to be considered ahead of the next revaluation cycle.

Alongside the review, the Government has opened a Call for Evidence, inviting submissions from landlords, brewers, hoteliers, trade bodies and other stakeholders. Responses must be submitted by 16 October 2026; responses can be sent to: PubsHotels.Valuation@hmtreasury.gov.uk

Aim of the Review

The Government says the review will examine whether the current valuation methodologies for pubs and hotels remain fit for purpose and explore options for creating a system that is fairer, more transparent and provides greater certainty for businesses.

In a press release from the Home Office, 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."

Mr Schurder added:

"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."

Follows Recent Business Rates Relief

The announcement follows the Government's recent confirmation of a 20% reduction in business rates bills for pubs, social clubs and live music venues from April 2027.

This measure builds on a 15% reduction introduced in April 2026, followed by a two-year real-terms freeze in business rates. According to the Government, the changes have resulted in around 75% of pubs seeing their rates bills either fall or remain unchanged during 2026/27, with the average pub saving approximately £1,650.

Industry Reaction

The Home Office’s press release also include reaction from key industry figures including:

Allen Simpson, Chief Executive of UKHospitality, said:

“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 of the British Beer and Pub Association, described the review as "sorely needed", arguing that pubs have long faced disproportionately high business rates liabilities.

“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.”

What Happens Next?

The review will focus on valuation methodologies ahead of the next revaluation in 2029. The Government has confirmed that 2026 rateable values will not be affected by the outcome of the review.

Businesses wishing to contribute evidence can respond to the Treasury's Call for Evidence by Friday 16 October 2026.

JG&P Comment

The review represents a potentially significant development for both the licensed trade and wider hospitality sector. While any changes are unlikely to affect current rateable values, operators will welcome the opportunity to contribute evidence on how pubs and hotels are valued and whether the present turnover-based approaches continue to provide fair outcomes in an increasingly challenging trading environment. The outcome of the review could have important implications for future business rates liabilities from the 2029 revaluation onwards.