Jerry Schurder, the former head of business rates at commercial real estate advisory firm Gerald Eve, now part of Newmark, has been appointed to lead the review and will examine current valuation methods and report back in March next year.
His recommendations will be considered ahead of the next business rates revaluation in 2029.
The government is also seeking views from landlords, hoteliers, business owners, representative bodies and valuation professionals as part of the review.
The move follows Prime Minister Andy Burnham’s recent announcement of a 20% cut to business rates for pubs, clubs and live music venues from April 2027.
Earlier this month, Burnham said he was looking to go further in supporting high street businesses on business rates in the government’s October budget.
Treasury minister James Murray said Schurder would help ensure the future system was “fairer for high street businesses”.
“Pubs and hotels are vital for communities and bringing growth to every postcode,” says Murray.
“Last month we announced tax cuts for pubs to give them the breathing room they need.
“Today we’re going further with a rethink of valuations - so that we can build a fairer system for the future.”
Schurder adds: “I look forward to hearing from businesses, representative bodies and valuation professionals as we assess how the current valuation methodologies for pubs and hotels operate in practice and whether they remain fit for purpose.”
UKHospitality says the review signals positive medium-term reform but must be coupled with action at the budget to address rising business rates bills across the whole hospitality sector.
“I’m pleased that the government is looking seriously at the valuation methodology for pubs and hotels,” says Allen Simpson, chief executive of UKHospitality.
“Business rates remain a significant burden for hospitality businesses and the system needs to better reflect the trading realities for the sector.”