a rethink of valuations - so that we can build a fairer system for the future.

The Treasury says business rates expert Jerry Schurder will lead the review into rate valuations and report back in March 2027, with the government calling for the views of landlords, hoteliers and business owners to feed in to the process.

Pub groups have argued they face disproportionately higher rates bills, but other businesses have called for a wider reform of the rates system.

According to the British Beer and Pub Association (BBPA), 161 pubs closed in the first three months of this year across England, Scotland and Wales, equating to the loss of around 2,400 jobs.

Rising business rates are cited as one issue facing the sector, although there have also been complaints that increases in National Insurance and the minimum wage have made staff costs more expensive.

James Murray, financial secretary to the Treasury, said the new review would look at The review of how rates are calculated in England and Wales could lead to reform of the system. A review is being launched into the way business rates are calculated for pubs and hotels in England and Wales, and could lead to a reform of the system.

A review is being led by business rates expert Jerry Schurder, who will report back in March 2027 with the government's views on the matter. The Treasury says this will be the first major overhaul of the system since 2019.

Pub groups have argued they face disproportionately higher rates bills, citing rising costs for staff and increased National Insurance contributions. However, other businesses have called for a wider reform of the rates system to address issues such as increasing business rates and exemptions for smaller firms.

James Murray, financial secretary to the Treasury, said the new review would look at 'a rethink of valuations - so that we can build a fairer system for the future'. Shadow Chancellor Sir Mel Stride said the review was 'far too late for a sector this Labour government has already done its best to kill off'.

The BBPA says pubs are valued differently for rates than retail venues. Instead of being based just on floor area, they are judged by a measure called Fair Maintainable Trade (FMT) - which means when a pub's turnover increases, so does its rates bill.

Jonathan Lawson, the chief executive of Butcombe Group, which has 120 pubs across the south and south west of England, told the BBC's Today programme that the use of FMT meant pubs were effectively being 'punished for success', while large online retailers that operate out of warehouses were not subject to revenue-based rates calculations.

Their rates, he said, 'are calculated based on what is deemed to be the market rent for that area, and takes very little on board in terms of revenue driven through that site'. You can have a very