Review launched into how pub and hotel business rates calculated
Summary
The UK government is starting a review of how business rates are calculated for pubs and hotels in England and Wales. The review aims to create a fairer system and will report back in 2027. Meanwhile, a 20% cut in business rates for pubs and live music venues in England is planned to take effect in April.Key Facts
- Jerry Schurder, a business rates expert, will lead the review of business rate valuations.
- The review seeks input from landlords, hoteliers, and business owners.
- Pubs are currently valued differently for rates using "Fair Maintainable Trade," which links rates to turnover.
- The review will influence the next general business rates revaluation in 2029.
- Pubs have faced high business rates, contributing to many closures and job losses (161 pubs closed in early 2026, costing about 2,400 jobs).
- The government announced a 20% business rates cut for pubs, social clubs, and live music venues in England starting April.
- Some groups want broader reform of business rates and more relief for small businesses.
- Businesses expressed concern that the current system increases costs alongside other rising expenses like National Insurance and minimum wage.
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