The Government has launched an independent review into how pubs and hotels are valued for business rates in England and Wales.

The review follows concerns after the 2026 revaluation, which came into effect on 1 April 2026. Median rateable values increased by 32.8% for pubs and 32.2% for hotels, compared with 15.4% across all sectors.

A property’s rateable value is one of the main factors used to calculate its business rates bill. For pubs and hotels, valuations can take into account factors such as trading performance, rents, and how comparable properties are valued.

The Government is now asking businesses, industry bodies, valuers and other interested parties for evidence on whether the current approach remains appropriate and how it could be improved. The review will look at how rents are set, how trading performance affects those rents, and whether current valuation methods accurately reflect market conditions.

The call for evidence closes on 16 October 2026. The independent review is expected to report by the end of March 2027.

Any recommendations accepted by the Government are intended to apply from the next business rates revaluation in April 2029; they will not change the 2026 revaluation or current rateable values. As business rates are devolved across the United Kingdom, the review will consider valuation methods used in England and Wales only. The Scottish Government is running a separate independent review of the licensed hospitality sector in Scotland.  

The Government has also said it expects to provide a wider update on business rates reform at the Budget on 28 October 2026.

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