Business rates review for pubs and hotels a step forward but wider root and branch review needed

Richard Blackmore from The East Midlands Chamber

The East Midlands Chamber has welcomed a Government review into pub and hotel business rates valuations but renewed its call for a full root and branch review, to include manufacturing and smaller businesses, as well as the full hospitality sector.

The Treasury’s independent review and Call for Evidence into the valuation methodology for pubs and hotels follows an announcement in July of an additional 20% cut to business rates for pubs, social clubs and live music venues, taking effect from April 2027, and a recent revaluation that saw many properties re-assessed.

The independent review is expected to end in March 2027 with businesses invited to participate in a Call for Evidence open until 16th October 2026.

2026 valuations will not be changed and the review will consider valuations ahead of the next revaluation in 2029.

Responses should be submitted to: pubshotels.valuation @ hmtreasury.gov.uk.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “A full root and branch review of business rates – not just for pubs and clubs but the whole hospitality sector, as well as manufacturers and smaller businesses – is something we’ve been calling for over a long period of time.

“A review of that extent and detail is still needed and that’s why it continues to be one of our key policy asks, as set out in our landmark publication The Framework for Growth.

We welcomed the 20% relief package for pubs and clubs that was announced in July as a step forward in alleviating the immense pressure on that corner of hospitality – pubs, social clubs and live music venues – but it left out essential parts of the hospitality sector such as hotels and cafes, as well as other sectors disproportionately impacted by business rates, such as manufacturers and smaller businesses.

“The announced review is a timely measure toward addressing uncertainty across the hospitality sector but we still need to see that wider root and branch review we’ve been calling for. With the huge burden of high costs faced by business, including hospitality, it’s essential the upcoming Autumn Budget on 28th October is fully supportive of business growth.

“I’d encourage the hospitality sector to take the opportunity to share their views in the Treasury’s Call for Evidence before the deadline on 16th October to help influence any changes.”