24 Aug 2026
The Treasury has launched an independent review into how business rates are calculated for pubs and hotels in England and Wales.
Business rates for these properties are usually based on their trading potential, rather than simply the rental value of the building. For pubs, this involves estimating the turnover that could be achieved by a reasonably efficient operator.
The review will consider whether this approach remains fair and fit for purpose. It will be led by business rates specialist Jerry Schurder, who will seek views from publicans, landlords, brewers, hoteliers, industry bodies and valuation professionals.
Recommendations are expected by the end of March 2027, in time to inform the next business rates revaluation in 2029. The review will not change the valuations introduced through the 2026 revaluation.
Financial Secretary to the Treasury James Murray said pubs and hotels were “vital for communities and bringing growth to every postcode”. He said the review would help create a fairer system for the future.
The issue is particularly important for rural pubs. As well as supporting local jobs, many provide far more than food and drink, offering services such as village shops, cafés, post offices, community rooms and activities that help tackle loneliness and isolation.
RSN member Pub is The Hub highlights this wider role in its recent Social Value of Pubs report. The report argues that income from additional community services, which may make little or no profit, should not automatically increase a pub’s rateable value.
The review therefore offers an opportunity for the circumstances and wider community value of rural pubs to be properly considered within the future system.
