Government looking at further support for pubs and hotels

Key Points

The government has announced it will launch a review into how pubs and hotels are valued for business rates.
This follows the announcement of a 20% cut to business rates paid for in part by stripping tax relief from vape shops.
The independent review will consider feedback from the hospitality industry and will be led by business rates expert Jerry Schurder.
Burnham's government has recently announced a range of measures aimed at improving the viability of pubs and revitalising British high streets.

The UK government is expanding its support for the struggling hospitality industry by launching a review into pub and hotel business rates valuations.

The current valuation system resulted in pubs and hotels seeing significant increases in their rateable value at the 2026 revaluation.

This was due in large part to the ending of lower pandemic-era valuations, but venues have expressed concern that the current system does not reflect the reality of the market, leading to pubs and hotels paying higher business rates.

The Treasury launched the review on Monday 24 August, led by business rates expert Jerry Schurder. The review will aim to improve the fairness of the revaluation system for pubs and hotels and will report back by the end of March 2027 to inform the next revaluation.

Business owners and industry experts will also have the opportunity to provide input on the system for valuing these businesses.

“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,” said British Beer and Pub Association Chief Executive Emma McClarkin.

“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.”

Revitalising British high streets

The launch of this review comes after Prime Minister Andy Burnham announced a 20% cut to business rates bill for pubs, social clubs, and live music venues from April 2027.

These cuts will be partly funded through the stripping of tax relief for businesses like vape shops that the government has said “do not make a positive contribution to local communities”.

Online marketplaces that do not properly comply with their tax obligations also a face a crackdown, the funds from which will also be directed to support for pubs and hotels.

Burnham has made revitalising British high streets one of his first key goals, starting with providing a better operating environment for pubs across the country.

Just before Burnham took office, Fuller’s executive chairman Simon Emeny decried the government’s decade of tax rises interfering regulation in the sector, stating that it had contributed to more than 5,800 pubs closing.

Burnham seems to have taken the feedback from landlords and hospitality businesses to heart, with his government quickly announcing a slew of measures to provide relief for pubs and other venues in the country.

“Pubs and hotels are vital for communities and bringing growth to every postcode,” said Financial Secretary to the Treasury James Murray.

“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.’