Licensees face business rate hike

Licensees are facing up to big hikes in their business rates this week with new bills being issued this Friday (April 1).

Rates have been rumoured to be increased by as much as 30 per cent in some areas across the UK while the Federation of Small Businesses (FSB) says many retailers, including pubs, are facing rises of close to 16 per cent.

Pubs in Wales are set to be hit hardest as they do not have the same transitional arrangements for the increases as other parts of the UK.

The new system, which will set the rates payable for the next five-year period, is based on the value of the business, which includes a combination of rental values and turnover.

Bill Sharp, licensee at the Kings Arms in Southwark, London said the new rates added up to another added financial burden for pubs.

"A lot of this has been created by pub companies putting the rents up. Pubs and retailers are more than paying for local services," he declared.

"This will push the price of products up and with more red tape and bureaucracy it does not bode well for the future. Property owning companies' greed is now being put on the retailer."

However, Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations said: "Licensees in England and Scotland will have transitional arrangements so the costs will be phased in. Licensees in Wales do not have these arrangements so they will be the hardest hit."

FSB business rates chairman Roger Culcheth said: "Business rates are the second or third highest item of expenditure for most small firms and are five times more expensive as a proportion of turnover than they are for large companies."

Relief is being introduced for small businesses but this is unlikely to be of any help to the majority of licensees since it only applies fully to properties with rateable values of less than £5,000. The small business relief is being paid for by a surcharge on ratepayers with higher rateable values.

The Publican says:​ Do not to be taken in by unscrupulous operators who may seek instructions to lodge an appeal on behalf of the licensee.

Many of these operators charge a fee and may not have the experience to launch an effective appeal.

If in doubt contact The Publican newsdesk on 020 8565 3053, or email us at news@thepublican.com