Business rates review to help pubs and hotels, Treasury says

The Treasury has enlisted an expert to review how business rates are calculated for pubs and hotels and make recommendations for reform of the system.

Jerry Schurder, former business rates policy lead at advisory Newmark UK, will lead the independent review into valuations and report back to the Treasury by the end of March 2027.

The Government is also launching a call for evidence from landlords, brewers, hoteliers and business owners.

It comes after a 20% cut to business rates bills was announced to ease cost pressures on pubs, social clubs and live music venues from April next year.

The move was largely welcomed but there were calls to apply the relief to a wider range of businesses and to go further with broader changes to the system.

No 10 has said it will look to set out further reform, including small business rates relief, at the Budget.

Financial Secretary to the Treasury James Murray said: “Pubs and hotels are vital for communities and bringing growth to every postcode.

“Last month we announced tax cuts for pubs to give them the breathing room they need. Today we’re going further with a rethink of valuations – so that we can build a fairer system for the future.”

Emma McClarkin, chief executive of the British Beer and Pub Association, said: “For years pubs have paid a disproportionately higher business rates bill which has ground down their ability to keep the doors open, so this review is sorely needed and hugely welcome.”

The Government has come under fire from some of Yorkshire’s leading publicans over the tax regime being inflicted on pubs.

Tommy Banks, who runs the Michelin-starred Black Swan in Oldstead and the Abbey Inn in Byland, told The Yorkshire Post that Mr Burnham’s business rates announcement from last month “will leave many people in hospitality feeling frustrated and patronised”.

At the time, he said: “This is such a token gesture that it’s almost laughable.

“The value of the change works out at around £3 to £5 a day for many businesses, which is less than the price of a pint of beer. It won’t save businesses and it won’t protect jobs.”

The acclaimed chef, who has appeared on Masterchef and Saturday Morning with James Martin, has backed Tom Kerridge’s campaign to cut VAT for the hospitality industry.