Almost a third of pubs in England ‘exempt from rates payments’ from April

Almost 30% of pubs in England won’t pay any business rates over the next five years, starting from April 2017 when new property valuations come into force, according to figures from rates experts CVS.

The data analysis, seen exclusively by The Morning Advertiser, revealed that of the 39,826 pubs liable to pay business rates in England, 11,740 have a rateable value below £12,000 meaning they are exempt from paying rates under the new regime.

Durham County Council had the most pubs exempt from rates with 272, closely followed by Wiltshire Council with 225, and Cornwall Council with 178. Most pubs in this band were in the Midlands and north of England (full list below).

The data also shows that of the remaining 28,086 pubs, 24,375 have a rateable value under £100,000, making them eligible for the new £1,000 rates discount* announced in the Budget. The south-east region has the most pubs eligible for this discount with 4,545 sites with a rateable value between £12,000 and £100,000 (full list below).

Interestingly, less than 10% of pubs, 3,711 of the largest sites, have a rateable value above £100,000 and, therefore, do not qualify for rates discount.

However, any pub facing large increases in business rates will be able to apply for a slice of the £300m five-year hardship fund regardless of its rateable value.

CVS chief executive Mark Rigby said: “We specifically asked for discounts to rates bills for small pubs.

"That demand was met and both the Chancellor and secretary of state should be congratulated on listening to the concerns of landlords of small pubs but, more importantly, acting upon those concerns with meaningful financial help."

He explained the number of pubs that have closed during the current tax regime is 11,443.

Researchers examined figures from the Government’s own valuation agency, looking specifically at the ratings list for the pub category.

*The £1,000 discount is subject to state aid limits for businesses with multiple properties.

Top 15 council areas by rates-exempt pubs

 

Top 15 council areas eligible for pub discount