Business rates expert Jerry Schurder will lead the independent review, which will examine how rateable values are assessed and report back to Treasury in March 2027. The Government is inviting views from landlords, hoteliers and business owners to help inform the assessment via a Call for Evidence.
Speaking on the announcement, our Director of Corporate Affairs, Kate Boothman Meier, stated:
“Today’s news that the Government has commissioned a serious rethink of business rate calculations for pubs and hotels is a welcome sign that the industry’s calls for reform are finally being heard.
“Our retail, hospitality and leisure businesses are uniquely interconnected, with retail acting as a vital anchor for the wider visitor economy. The strength of our high streets and destinations depends on these sectors working together, with hotels bringing visitors into our cities and retail and leisure giving them reasons to visit, stay longer and spend.
“Hotels have been a vital but neglected part of our economic ecosystem for too long now, having faced some of the largest and most structural increases in business rates anywhere in the system. It is time to acknowledge the role they play in driving tourism, generating tax revenues, and supporting hundreds of thousands of jobs across retail, hospitality, culture and leisure.
“The turnover-based methodology for calculating business rates for hotels has created significant volatility for the sector. Unpredictable rates valuations have only added uncertainty to a sector already under pressure. We encourage movement away from the receipts and expenditure method and welcome a standardised approach within Jerry Schurder’s proposed reforms.
“This review offers a critical opportunity to create a fair business rates system that acknowledges the role that retail, hospitality and leisure businesses play in driving growth and investment across the country. We need to see fundamental reform to business rates valuations to foster the pro-growth, pro-investment environment that businesses need to not just survive but thrive.”
