The Treasury has appointed expert Jerry Schurder to lead a review into how business rates are calculated for pubs and hotels in England and Wales.

The UK government has initiated a formal review into the valuation methods used for business rates in the pub and hotel sectors across England and Wales. Led by business rates expert Jerry Schurder, the review aims to explore potential reforms to the current system, with findings expected to inform the next rates revaluation in 2029.

Current Valuation Methods and Industry Concerns

Pub groups have long argued that they face disproportionately high tax bills compared to other sectors. Unlike retail venues, which are primarily assessed based on floor area, pubs are valued using a measure known as Fair Maintainable Trade. This system means that a pub's business rates bill increases alongside its turnover. The British Beer and Pub Association (BBPA) reports that 161 pubs closed across England, Scotland, and Wales in the first three months of this year, resulting in approximately 2,400 job losses.

Government Action and Industry Response

The review follows recent government efforts to provide relief to the hospitality sector, including a 20% cut in business rates for pubs, social clubs, and live music venues in England set to take effect in April. While industry bodies like the BBPA and the Federation of Small Businesses have welcomed the appointment of Schurder, other groups have urged the government to address broader systemic issues. Representatives from the retail sector have emphasized the need to ensure their interests are not overlooked, while opposition figures have criticized the timing and scope of the government's current economic policies.