The Treasury has launched an independent review of business rates for pubs and hotels in England and Wales on Monday, seeking changes to valuations that the government says could make the system fairer and help hospitality businesses plan ahead.

The review will be led by Jerry Schurder, a former business rates policy lead at Newmark UK, and will examine how properties in the sector are assessed ahead of the next business rates revaluation in 2029. Schurder is due to report his findings to the Treasury by the end of March 2027.

The Treasury said landlords, brewers, hoteliers and other business owners will be invited to provide evidence on how the current valuation system operates. The review will consider whether existing methodologies remain appropriate and whether they reflect the trading conditions faced by pubs and hotels.

James Murray, financial secretary to the Treasury, said: “Pubs and hotels are vital for communities and bringing growth to every postcode.” He said the government was going further after last month’s tax measures with “a rethink of valuations” intended to build a fairer system.

The review follows a 20 per cent cut in business rates for pubs, social clubs and live music venues in England announced by Andy Burnham last month, due to take effect from April 2027. The government said the £100 million cost would be funded by changes affecting businesses including vape shops.

The British Beer and Pub Association said pubs had faced disproportionately high business rates, with chief executive Emma McClarkin describing the review as “sorely needed and hugely welcome”. The trade body said 161 pubs closed across England, Scotland and Wales during the first three months of 2026, representing about 2,400 lost jobs.

The sector’s rates are calculated using Fair Maintainable Trade, which links valuations partly to a pub’s trading potential. Jonathan Lawson, chief executive of Butcombe Group, said the approach meant pubs were effectively being “punished for success”.

UKHospitality chief executive Allen Simpson said the review was positive but argued that business rates remained a significant burden for hospitality businesses. The Federation of Small Businesses called for wider reform, including a higher threshold for small business rates relief.

The government has said further reforms, including changes to small business rates relief, could be set out at the autumn Budget on 28 October. The review itself will not alter the rateable values introduced in 2026, but its findings are intended to inform the 2029 revaluation.

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