HM Treasury opened a review on 24 August 2026 to evaluate how the Valuation Office Agency (VOA) calculates business rates for pubs and hotels.
Key takeaway: Current 2026 rateable values remain unchanged. The review focuses on creating a fairer system for the next revaluation in 2029.
What Has the Treasury Announced?
The government appointed business rates expert Jerry Schurder to lead the independent review. He will assess current valuation formulas to ensure they are fair, transparent, and accurate for today’s market.
The Treasury also launched a Call for Evidence. Pub owners, hoteliers, trade groups, and valuers can submit their feedback by 23:59 on 16 October 2026. Schurder will present his recommendations by March 2027.
| Key Milestone | Details & Dates |
| Review Launch Date | 24 August 2026 |
| Call for Evidence Deadline | 16 October 2026 (23:59) |
| Final Report Submission | End of March 2027 |
| Implementation Year | 2029 Revaluation Cycle |
Why Is the Review Happening Now?
The 2026 revaluation caused a steep rise in business rates across the hospitality sector. Treasury data shows median rateable values jumped significantly between the 2023 and 2026 lists:
- Pubs: Median rateable values rose by 32.8% (with 5% seeing increases over 150%).
- Hotels: Median rateable values increased by 32.2%.
This sharp jump happened because the 2023 list used property values from April 2021, when COVID-19 rules lowered market figures. The 2026 list used updated values from April 2024.
Currently, pubs are valued using Fair Maintainable Trade (FMT), which estimates potential turnover for a typical operator. Hotel values rely on trade and financial data. The review will check whether these turnover-focused models still reflect modern operating costs.
2026 Bills Will Not Fall Automatically
Hospitality owners should note key limits to this announcement:
- No immediate cuts: The review will not reduce your current 2026/27 rateable value.
- No payment pauses: Current business rates bills remain fully payable.
- Separate from relief policy: The review does not set multipliers or temporary rate cuts.
Existing support remains in place: eligible pubs and live music venues receive a 15% discount for 2026/27, with a 20% discount starting in April 2027.
What Hospitality Businesses Should Do Now
- Check your VOA property details: Log into your account to confirm floor area, room counts, and trade figures are accurate. Correcting mistakes now can lower your current bill, and keeping this reconciled against your own bookkeeping records makes discrepancies easier to spot.
- Apply for available reliefs: Confirm if your property qualifies for Small Business Rate Relief or Retail, Hospitality and Leisure (RHL) discounts.
- Submit evidence before 16 October 2026: Share your cost pressures and valuation experience with HM Treasury.
How Lanop Can Help
Business rates directly affect your cash flow and operational budget. Lanop helps pub and hotel owners:
- Review current rateable values for errors or grounds to appeal.
- Identify all eligible tax credits and rates relief schemes, as part of wider tax planning.
- Plan financial strategies for the 2029 valuation changes.
Contact Lanop’s tax team today to review your current business rates assessment and book a free consultation with one of our advisors.
