Government kicks off business rates review: how you can get relief today

The UK government is launching a review into how business rates are calculated for pubs and hotels in England and Wales, with findings due to be released in March 2027. 

The review seeks to address “unfairness” in the sector, with pubs and hotels currently being taxed on how much money they make, in contrast to retailers who are just taxed on floor space – effectively punishing pubs for their own success. 

With a quarter of pubs and restaurants currently bleeding money – and many venues closing their doors for good – this new business rates review offers much-needed relief for pub owners.

Yet, for owners who can’t afford to wait until 2029 for the overhaul, leaning on current business rates relief could prevent them from calling last orders.

Relief on the horizon? Business rates overhaul planned for pubs and hotels

Pubs and hotels have been hit with steeper business rates in 2026, as pandemic-era discounts finally came to an end. 

This is because during the pandemic, valuations were kept artificially low to reflect the sector’s declining trade, but with support now withdrawn, bills have snapped back to pre-pandemic norms almost overnight.

On top of this, pubs aren’t taxed on floor space like most retailers. Instead, they’re valued using a measure named Fair Maintainable Trade (FMT), which is based on turnover. In practice, this means the more successful the pub, the higher its rates bill climbs, while large-scale warehouse retailers face no similar penalty.

While Andy Burnham did recently cut business rates by 20% for pubs, social clubs, and live music venues, many criticise the move as little more than a stopgap, given the scale of closures and cost pressures still facing the sector. 

The government’s independent review, led by business rates specialist Jerry Schurder, seeks to address this. The review will investigate whether the current valuation system accurately reflects trading conditions for hospitality businesses, with findings due to feed into the next nationwide revaluation in 2029.

According to the financial secretary to the Treasury, James Murray, pubs and hotels are “vital for communities,” and a valuation rethink could help build a “fairer system for the future”.

The review could see hospitality businesses move away from turnover-based valuations altogether, replaced by a more balanced system that better reflects the financial reality of running a pub and hotel. 

Yet, with findings not due until 2027 and real change not landing until the 2029 revaluation, the truth is that many operators face a long wait before meaningful relief.

Will the business rates review go far enough to save the struggling pub sector?

While news of the government’s review has been broadly welcomed across the industry, some fear it doesn’t act fast enough for hospitality business owners who need help today. 

CAMRA chairman Ash Corbett-Collins, speaking to the Morning Advertiser, described the review as “another promising step” from the Government, adding that CAMRA would take part in the review “on behalf of beer drinkers and pubgoers.”

“Ordinary drinkers want their locals open, busy, and at the centre of communities. Tackling our unfair business rates system will help if the review delivers lower and fairer bills”, Corbett-Collins continued.

Yet, while UK hospitality chief executive Allen Simpson welcomed the review, he warned it wouldn’t ease pressure in the short term, saying it amounts to “medium-term reform that will not solve the immediate financial challenges caused by rising business rates bills”. 

He pointed to steep rises already hitting the sector, with the average hotel’s rates up 110% over the past three years, and restaurants facing increases of 54%. 

The message from across the industry is a familiar one. Reform is welcome, but it’s happening too slowly. With Britain and Wales’s pub and hotel sector buckling under the weight of rising costs, many business owners won’t be able to wait until 2029 for meaningful change.

Types of business rates relief available now

Rather than watching the clock, several relief schemes already exist to help business owners ease their tax burdens. 

Pubs, hotels, and other hospitality venues may already benefit from Retail, Hospitality and Leisure relief. While the scheme itself ended on 31 March 2026, eligible properties with a rateable value under £500,000 now benefit from permanently lower business rates multipliers instead. 

Businesses with a rateable value less than £15,000 may qualify for small business rate relief, which would result in your rate of relief decreasing from 100% to 0% as the rateable value rises towards the threshold.  

Rural pubs may qualify for rural rate relief if they’re the only such business in their settlement, while transitional relief can cushion the blow for those hit by steep rises at the 2026 revaluation.

Businesses in genuine financial difficulty can also apply for discretionary hardship relief via their local council. As eligibility and discount levels vary, the best next step is to assess all of the business relief options available and check directly with your local authority to confirm what you’re entitled to.