Government vows to make business rate valuations for pubs and hotels fairer
The UK government has commissioned an independent review, led by Jerry Schurder, to make business rate valuations fairer for pubs and hotels in England and Wales, reporting to the Treasury by March 2027.
Intelligence analysis by Llama
The UK government has launched an independent review of business rate valuations for pubs and hotels in England and Wales, led by rates specialist Jerry Schurder. It follows sharp bill increases after pandemic-era relief ended and new revaluations took effect, and comes alongside Andy Burnham's 20% rate cut for pubs, clubs and live music venues from April next year.
Pubs and hotels in England and Wales got bigger tax bills this year, and the government has said that isn't fair. They've asked a rates expert named Jerry Schurder to figure out a better way to calculate those taxes before the next big review in 2029, like fixing the rules of a game before the next round is played.
Analysis
Jerry Schurder's review mandate
The Treasury has handed Jerry Schurder, described as an independent business rates specialist, a narrow but consequential brief: examine how business rate valuations are calculated for pubs and hotels in England and Wales and report back by the end of March 2027. Crucially, the review sits ahead of the next revaluation date in 2029, giving the government a window to redraw the methodology before bills are recalculated again. The article is explicit that the rise in valuations that hit hospitality this year will not be undone by the review, meaning the immediate pain stays in place while the long-term fix is debated. That sequencing has drawn qualified support from the sector rather than unqualified relief.
James Murray's valuation rethink
Financial secretary to the Treasury James Murray framed the review in community-and-growth terms, calling pubs and hotels "vital for communities and bringing growth to every postcode" and arguing a "rethink of valuations" would help "build a fairer system for the future". The rhetoric ties the exercise to Labour's wider growth agenda rather than to a simple tax cut. It also signals that the Treasury sees the current system as structurally misaligned with how hospitality actually trades, a point the trade bodies have pressed for years. Whether that framing translates into a lower multiplier, a new basis for assessing turnover versus rent, or sector-specific reliefs will be the substantive question for the 2029 revaluation.
234 booksellers' parallel campaign
While the review is hospitality-specific, the article widens the lens with a separate campaign: this month 234 independent booksellers signed an open letter asking the prime minister to extend the same consideration to bookshops. The juxtaposition underlines that business rates reform is now a broader high-street question, not just a pub-and-hotel one. Industry figures, including Allen Simpson of UKHospitality and Emma McClarkin of the British Beer & Pub Association, have used the moment to repeat their call for a wholesale overhaul of the rates system rather than incremental patches. The government has hinted that wider reform, including small business rates relief, will land at John Healey's first budget on 28 October, suggesting the Schurder review is one piece of a larger reset rather than the whole answer.
Key points
- Independent review of business rate valuations for pubs and hotels in England and Wales, led by Jerry Schurder, will report to the Treasury by end of March 2027
- Review will feed into the next revaluation in 2029 but will not reverse this year's valuation increases
- Andy Burnham announced a 20% business rate cut for pubs, social clubs and live music venues in England from April next year
- James Murray said a rethink of valuations would help build a fairer system for the future
- Industry estimates suggest two pubs are closing a day across Britain this year, while 234 independent booksellers have called for similar relief
If the Schurder review succeeds and feeds into the 2029 revaluation, pubs and hotels could see structurally lower bills, easing the cost pressures that UKHospitality and the British Beer & Pub Association say have thinned margins and driven closures. A fairer methodology might also encourage new openings in town centres and reduce the daily closure rate the industry cites.
The review will not reverse this year's valuation increase, so the immediate squeeze continues, with the industry estimating two pubs are closing a day. There is a real risk the March 2027 report lands too late to influence operational decisions, that the Treasury opts for cosmetic rather than structural reform, and that parallel campaigns such as the 234-bookseller letter are quietly deferred to avoid broadening the relief bill.
