The government has launched an independent review aimed at making business rate valuations for pubs and hotels in England and Wales fairer, officials said, as pressure mounts on ministers to support the struggling hospitality sector.
The review will examine how valuations are set for hospitality venues after many operators saw their bills rise this year following the end of pandemic-era relief schemes and the implementation of a recent revaluation. Ministers said the review’s findings will inform changes to the system ahead of the next scheduled revaluation in 2029.
The move comes amid growing calls for action to help pubs, hotels and other hospitality businesses facing increased operating costs. The situation has added political pressure on figures such as Manchester mayor Andy Burnham, who has been urged to press for measures to relieve the sector.
Details of the review’s remit and timetable were not disclosed in full, but the government said it would be independent and focused on improving fairness in the valuation process. Any recommendations are expected to feed into policy decisions before the next revaluation cycle.
Business rates are calculated from property valuations that are periodically reassessed, and changes in those valuations can significantly affect the amounts firms pay. The review is intended to address concerns from the hospitality industry about the recent increases and the impact on businesses as they recover from the disruption of the pandemic.