Andy Burnham, the Labour Prime Minister, alongside his Chancellor John Healey, has committed to making business rate valuations fairer for pubs and hotels in England and Wales. This announcement comes as part of a wider government review set to improve the business rates system for hospitality venues before the next revaluation scheduled for 2029.
The Labour government confirmed that the current system, which many consider burdensome for hospitality businesses, will be subject to an independent review focused on enhancing fairness and reflecting the realities faced by these establishments.
The review will be led by Jerry Schurder, an independent business rates expert, who is expected to submit his findings to the Treasury by the end of March 2027. This initiative follows Mr Burnham’s announcement last month to reduce business rates for pubs, social clubs, and live music venues by 20% starting from April next year.
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James Murray, the Treasury’s Financial Secretary, emphasised the importance of pubs and hotels in supporting communities and driving local economic growth. He stated that a “rethink of valuations” is essential to establish a fairer system for the future.
Industry representatives have welcomed the review. Allen Simpson, CEO of UKHospitality, highlighted that business rates remain a significant challenge and need to better mirror the operational realities of the hospitality sector. Similarly, Emma McClarkin, CEO of the British Beer & Pub Association, described the review as “sorely needed and hugely welcome,” noting that pubs have long paid disproportionately high business rates that threaten their viability.
Tom Ironside from the British Retail Consortium also expressed support for the review but cautioned that the needs of retailers must not be neglected in the process.
Criticism came from the Conservative Party’s Shadow Chancellor Sir Mel Stride, who argued the review is “far too late” for a sector he claims this Labour government has already harmed. He pointed to tax increases and employment regulations as factors pushing hospitality businesses to the brink.
Liberal Democrat Treasury spokesperson Daisy Cooper labelled the reform of business rates “long overdue” and called for additional measures such as an emergency VAT cut and reversing recent job-related tax changes that have particularly affected hospitality.
As the review progresses, stakeholders await outcomes that could reshape the financial landscape for pubs and hotels across England and Wales, aiming to balance fair taxation with sector sustainability.