Pub and hotel operators in England and Wales have been invited to help shape a government review of the way their properties are valued for business rates. The review could influence the next revaluation in 2029, but it does not change anyone’s bill today.
For small hospitality businesses, that distinction matters. The review is an opportunity to document where the current valuation method fails to reflect commercial reality. It is not a reason to delay payments, assume relief will arrive or build an immediate saving into a cash-flow forecast.
What has been announced?
According to the BBC, business rates specialist Jerry Schurder will lead a Treasury review of valuations for pubs and hotels and report in March 2027. The government is seeking views from pub landlords, hoteliers and other business owners.
The work will examine whether the valuation approach can be made fairer and more transparent. It is expected to feed into the 2029 revaluation, so this is the beginning of a policy process rather than a confirmed change to rates bills.
Pubs are a particular focus because their rateable values are commonly assessed using “fair maintainable trade” — an estimate of the annual turnover a reasonably efficient operator could achieve. Industry groups argue that this can leave pubs carrying a disproportionate burden compared with some premises valued mainly by reference to rental evidence or floor space.
Hotels also have operational characteristics that can make valuation complicated, including room income, food and beverage sales, seasonality and local tourism demand.
Why this matters for smaller operators
Business rates are a fixed property cost that must be met even when margins are under pressure. Hospitality firms have also faced higher wage, energy, food and financing costs, making unexpected changes to a rateable value particularly difficult to absorb.
The review follows other government action aimed at the sector. In July, English pubs were promised a further rates discount from April 2027. Our earlier guide explains what the announced pub business rates cut means and what details are still awaited. The new valuation review is separate: it is about how the underlying property value is calculated, not simply the percentage relief applied to the eventual bill.
That separation is important for businesses operating across borders. Business rates policy and relief can differ between England and Wales, while the review itself concerns valuation practices affecting pubs and hotels in both nations. Operators should check the rules and support that apply where each property is located.
What pub and hotel owners can do now
Gather evidence while it is easy to retrieve. Keep valuation notices, rates bills, turnover records, occupancy data, floor plans and notes on unusual property constraints. Records showing seasonal trading, prolonged roadworks or structural limits may help explain why a standardised assessment does not match the business’s circumstances.
Separate property facts from business performance. A weak trading year does not automatically prove a rateable value is wrong. Note factual issues such as an incorrect floor area, facilities that are not usable, changes to the premises or assumptions that appear inconsistent with comparable properties.
Quantify the effect. If responding to a consultation or industry call for evidence, provide dates and numbers rather than general frustration. Explain how the valuation method affects investment, staffing or the viability of parts of the premises, without disclosing information you are not comfortable making public.
Check the current record. Owners should make sure the property details used by the relevant valuation authority are accurate. Where there may be a genuine error, our guide to checking a business rates valuation before starting a challenge outlines useful preparation for businesses in England.
Continue budgeting under the rules in force. A review outcome is not guaranteed, and any reform may be years away. Forecast using confirmed bills and reliefs, then model possible future changes as scenarios rather than expected savings.
What to watch next
The key near-term detail will be how businesses can submit evidence and what questions the review asks. Operators should also watch the autumn Budget for eligibility details around previously announced pub support, and then the review’s report in March 2027.
For now, the most useful response is practical: verify the facts held about the property, retain evidence that shows how the premises actually trade, and make a clear submission when the formal route opens. A well-evidenced contribution is more likely to help policymakers understand where the present system produces unintended results.
