The Treasury is “to call time on uncertainty” for pubs and hotels by making their valuations fairer.

Both the pubs and hotels sectors saw significant increases in rateable value at the 2026 revaluation in large part due to the ending of pandemic-era valuations. People are concerned that the current system does not reflect the realities of the pub and hotel market.

The new review launched today aims to look at improving fairness for businesses working with them to “ensure the system is fair and transparent”, and ensure pubs and hotels can plan better for the future.

Leading business rates expert Jerry Schurder will lead the independent review and report back to the Treasury by the end of March 2027 – in time for his recommendations to be implemented at the next revaluation.

In addition, a Call for Evidence, also launched today, will ensure landlords, brewers, hoteliers and business owners are properly represented in the process. This will ensure the views of businesses are heard. This follows government listening to business about the way the current system works.

Financial secretary to the Treasury, James Murray MP, said: “Pubs and hotels are vital for communities and bringing growth to every postcode.

“Last month we announced tax cuts for pubs to give them the breathing room they need. Today we’re going further with a rethink of valuations – so that we can build a fairer system for the future.’

In his first week in office, the Prime Minister put a new offer on the table for Britain’s job creators focused on greater certainty, clearer long-term direction, faster decision-making and a stronger business voice in shaping policy.

This government said it will act as a circuit breaker, bringing down costs for businesses and removing barriers so they can focus on growing and creating jobs.

Commenting on the news, Allen Simpson, chief executive at UKHospitality, said: “I’m pleased that the Government is looking seriously at the valuation methodology for pubs and hotels. Business rates remain a significant burden for hospitality businesses and the system needs to better reflect the trading realities for the sector.

“Comprehensive review and reform can address these challenges, while also supporting investment and growth. I look forward to working with the Government on the review and to provide evidence from across the hospitality sector.”

CAMRA also responded to the announcement of independent review of how pub and hotels are valued for business rates in England.

Ash Corbett-Collins, CAMRA chairman, said: “This is another promising step from the new Government. Our pubs have suffered for far too long under the current ratings system, which punishes bricks and mortar businesses, and creates the ridiculous situation where global giants pay less per square metre for warehousing than a licensee does for their pub.

“An independent review is a great way to look at this, and we will definitely be taking part on behalf of beer drinkers and pubgoers. As always, the real difference will be dependent on the results.

“Hopefully, there will be fundamental changes to the out-of-date ratings system and publicans will have the certainty and incentive to grow their businesses.