The government has announced a review of how business rates are calculated for pubs and hotels, following concerns that recent valuations have placed significant pressure on the hospitality sector.
Pubs and hotels saw sharp increases in rateable values following the 2026 revaluation, partly reflecting the end of pandemic-era valuations and a return to more normal trading assumptions.
The review is intended to examine whether the current system is fair and transparent, while giving hospitality businesses greater certainty over future costs.
As part of the process, the government will launch a Call for Evidence to gather views from landlords, brewers, hotel operators and other industry representatives. Ministers say this will help ensure that the experiences of businesses affected by the current valuation system are properly reflected.
The findings will be submitted to the Treasury by the end of March 2027, allowing any recommendations to be considered ahead of the next business rates revaluation.
The announcement follows earlier government measures to reduce business rates for pubs, aimed at providing more immediate relief to a sector that continues to face pressure from higher staffing, energy and operating costs.
James Murray, Financial Secretary to the Treasury, said the government wanted to go further by reconsidering how valuations work and creating a fairer system for the future.
For pubs and hotels, the review could prove significant. Business rates represent a substantial fixed cost for many premises, and changes to the valuation process could have a major impact on long-term budgeting, investment and viability.
While any reforms are still some way off, the review signals that the government is prepared to reconsider how hospitality businesses are valued and taxed as part of the wider business rates system.
