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A comprehensive review is set to examine the current method used to calculate business rates for pubs and hotels across England and Wales, with potential reforms on the horizon. The Treasury has appointed business rates specialist Jerry Schurder to lead this evaluation, aiming to deliver findings by March 2027. The government is inviting input from landlords, hoteliers, and business owners to contribute to the review process.
Last month, Andy Burnham introduced a 20% reduction in business rates targeting pubs, social clubs, and live music venues in England, effective from April. While pub groups argue they face disproportionately high business rates, other sectors have urged for a broader overhaul of the entire business rates system. According to the British Beer and Pub Association (BBPA), 161 pubs shut down during the first quarter of this year throughout England, Scotland, and Wales, resulting in approximately 2,400 job losses. Rising business rates, alongside hikes in National Insurance and minimum wage costs, are highlighted as key challenges impacting the hospitality sector.
James Murray, the Treasury’s financial secretary, emphasized that the review is intended to reconsider valuation methods to create “a fairer system for the future.” Emma McClarkin, BBPA’s chief executive, welcomed the move, stating, “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.” The BBPA notes that pubs are valued differently from retail outlets: instead of basing rates simply on floor area, pubs are assessed according to Fair Maintainable Trade, meaning that as turnover rises, the rates bill increases as well.
Jerry Schurder, formerly the business rates policy lead at advisory firm Newmark UK, will complete his review in time to influence the next business rates revaluation scheduled for 2029. Craig Beaumont of the Federation of Small Businesses praised the appointment, highlighting Schurder’s “crucial heavyweight business rates expertise.” However, Beaumont also called on the government to address broader issues within the rates system, including raising the threshold for small business rate relief. Similarly, Tom Ironside from the British Retail Consortium welcomed the review but stressed the importance of considering retailers’ interests. In contrast, Shadow Chancellor Sir Mel Stride criticized the timing of the review, stating it was “far too late for a sector this Labour government has already done its best to kill off,” citing tax hikes and regulatory changes that he claims have pushed hospitality businesses to the brink. Daisy Cooper, the Liberal Democrat Treasury spokesperson, echoed calls for reform, describing it as “long overdue,” and advocated for an emergency VAT cut and a reversal of job tax increases that have particularly impacted hospitality.
Last year, under Chancellor Rachel Reeves, the government announced plans to phase out business rate discounts introduced during the Covid pandemic, with no discounts available from April this year. This decision, combined with significant increases in the rateable value of pub premises, resulted in potentially higher bills for landlords. Following backlash from the hospitality industry, the government introduced a 15% business rate cut for pubs and music venues earlier this year in 2026. The subsequent 20% discount announced in July will be in addition to this existing support. However, the government clarified that the discount will exclude the “very largest” live music venues, and some businesses remain uncertain about their eligibility, particularly whether they qualify as pubs to receive relief. Additional details regarding eligibility criteria are expected to be revealed in the Chancellor’s autumn Budget
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