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Review launched into how pub and hotel business rates calculated
The review will seek a fairer valuation system as 75% of pubs see bills fall or stay flat under current tax changes, the Treasury said.
On Monday, August 24, 2026, the Government launched an independent review into how pubs and hotels are valued for business rates, with Financial Secretary to the Treasury James Murray stating the move aims to build a 'fairer system for the future.'
Greene King CEO Nick Mackenzie and British Beer and Pub Association Chief Executive Emma McClarkin argue the current system is outdated, noting valuations have barely changed in three decades despite shifting customer habits and market realities.
Bartellas owner Ian Eldridge reports over £80,700 in monthly costs, while pub landlord Charles Smythe claims he must sell an extra 130,000 pints annually to cover rising business rate obligations.
Leading business rates expert Jerry Schurder will lead the review and report to the Treasury by the end of March next year, with industry members required to submit evidence by midnight on October 16.
The review follows recent tax relief measures including a 20% business rates cut for pubs starting April 2027, building on an earlier 15% reduction introduced this year to help the sector manage inflation and staffing costs.