Agent welcomes business rates review plan

FHP Property Consultants has welcomed plans for an independent review into the way business rates are calculated for pubs and hotels.

Currently the business rates valuations of pubs and hotels are based on their turnover and bear no regard to operating costs or profit.

Recommendations are expected to be presented to the Treasury by March 2027, ahead of the 2029 revaluation.

Alastair Fearn, director at FHP said: “As a result of basing the valuations on turnover, this punishes those pubs which trade successfully with a higher tax rate, limiting the incentive for growth.”

The announcement follows significant concern across the hospitality sector about the impact of the 2026 revaluation, with rateable values for pubs in England increasing substantially above the average for commercial property.

Alastair added: “Most governments, at one time or another announce a review of the rating system seemingly to little or no effect.

“This time though there does seem an appetite for change with the recommendations due to be presented by March 2027 so they can be implemented in the 2029 revaluation.”