Government promises fairer valuations for pubs and hotels in England and Wales
As The Guardian reports, the UK government will conduct an independent review of the valuation system used to calculate business rates for pubs and hotels in England and Wales. The aim of the review is to make the system fairer for hospitality venues.
This year, such establishments faced higher business rates bills after pandemic-era relief ended and new valuations came into force.
Revaluation in 2029
The review will be led by independent business rates specialist Jerry Schurder. He is due to submit a report to the Treasury by the end of March 2027.
As part of the work, valuation approaches will be considered ahead of the next revaluation date in 2029. However, the review will not affect the increase in valuations that occurred this year.
Financial Secretary to the Treasury James Murray said that pubs and hotels are important to communities and economic growth. According to him, rethinking valuations should help build a fairer system in the future.
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Industry reaction
UKHospitality chief executive Allen Simpson welcomed the government's intention to seriously consider the methodology for valuing pubs and hotels. He noted that business rates remain a significant burden for hospitality venues and that the system should better reflect the industry's actual operating conditions.
British Beer & Pub Association chief executive Emma McClarkin called the review long overdue. She said that pubs had paid disproportionately high taxes for years, weakening their ability to remain open. Estimates indicate that two pubs close every day in the UK this year amid higher taxes and labour, energy and food costs.
Relief for other venues
Last month, Andy Burnham announced plans to cut rates for pubs, community clubs and live music venues in England by 20% from April next year. At the same time, he is being urged to extend such tax relief to bookshops.
This month, 234 independent booksellers signed an open letter to the prime minister calling for bookshops to receive the same support as other businesses that play a positive role in communities. The government has also indicated that it may reform the rates system, including small business relief, as part of John Healey's first budget on 28 October.
