HM Treasury Launches UK Pub and Hotel Business Rates Review

HM Treasury has launched an independent review into how business rates are calculated for hotels and pubs across England and Wales to create a fairer commercial property tax system [[1], [2]]. Led by business rates specialist Jerry Schurder, the review focuses on valuation methodologies and will report findings by the end of March 2027 to inform the 2029 revaluation process [[1], [2]].

Who is leading the business rates review and what is the timeline?

Jerry Schurder, an independent rates expert and former business rates policy lead at advisory firm Newmark UK, will lead the assessment for HM Treasury [[1], [2]]. According to Boutique Hotel News, Schurder must submit recommendations to the Treasury by the end of March 2027 [2]. The government launched a formal call for evidence from hoteliers, landlords, brewers, and commercial property owners that runs through 16 October 2026 [[1], [2]]. As reported by Hotel Owner, the final recommendations will feed directly into the upcoming 2029 business rates revaluation cycle [1].

Why are hotel and pub property valuations facing scrutiny?

Hospitality leaders argue that rateable values under the current system place a disproportionately high burden on trading premises [1]. Rateable values for some venues have doubled or tripled during past revaluations, which UKHospitality chief executive Allen Simpson highlighted as evidence that the existing valuation framework is broken [1]. Esther Wood, a partner at accounting firm Goodman Jones, noted that hospitality premises face acute exposure because property rates reflect theoretical trading potential rather than bottom-line profits [1]. Operational costs have grown further due to increased statutory minimum wage rates and higher National Insurance contributions [1].

What interim business rates discounts apply before 2029?

Ministers introduced targeted relief packages to prevent steep increases as pandemic-era tax support unwinds [1]. Following an earlier 15% discount introduced in 2026 for pubs and music venues, the government confirmed a 20% business rates reduction for pubs, social clubs, and live music venues in England taking effect in April 2027 [[1], [2]]. Boutique Hotel News noted that Prime Minister Andy Burnham introduced the 20% cut following pressure from the hospitality trade [2]. Chancellor John Healey will detail further relief eligibility criteria in the autumn Budget [1].

Which geographic jurisdictions fall under the Treasury review?

The Treasury assessment covers property valuation frameworks across England and Wales, which share the same commercial rating system [[1], [2]]. Hotel Owner reported that Scotland and Northern Ireland maintain separate rating authorities and are not part of this valuation review [1]. However, industry trading pressures remain widespread across the UK: data from the British Beer and Pub Association showed that 161 public houses closed across England, Scotland, and Wales in the first quarter of the year, eliminating 2,400 jobs [1].

What actions can hotel operators take right now?

Hoteliers and pub operators can submit responses to the Treasury consultation before the 16 October 2026 deadline to ensure their operational data shapes future rating models [2]. Goodman Jones advised operators to mitigate current liabilities by auditing their eligibility for interim reliefs, disputing inaccurate valuations, and maintaining current financial records to support appeals [1]. Financial Secretary James Murray stated that the government seeks a rethink of valuations to establish a fairer system for property owners over the long term [2].