Trade wants end to rateable value banding system
by Tony Halstead
Satellite broadcaster Sky is being urged to sit down and hammer out a fairer system of charging pubs and clubs for its service.
Licensees and a number of trade groups want to see an end to the controversial rateable-value banding system used to charge licensed premises.
The calls come as hosts brace themselves for Sky's next round of subscription increases due before the start of the new football season next August.
Many pubs fear a Sky "double whammy" increase this autumn when new rateable values, introduced last April, are worked into annual subscription increases.
Informal talks between trade bodies and the company has resulted in a number of new charging options being floated.
A more straightforward structure with pubs charged directly on the rateable value of individual premises was one suggestion put forward.
Trade consultant Phil Dixon, who met Sky officials last week, said the current banding system is seen as unfair.
He believes it often ends up with similarly sized neighbouring pubs paying substantially different charges for the same service.
"One pub can sneak over one band level by a few pounds and get hit for a big increase while another stays just beneath it and is charged considerably less.
"There is a feeling the banding system is not the best way of providing a fair and equitable system," Dixon said.
He said a simple "penny in the pound" rateable value system would be a more transparent and fairer way of assessing charges.
A second suggestion was to use new updated premises plans needed for the new Licensing Act to work out subscriptions according to floor space.
Hosts believe this system would better reflect the number of customers actually watching Sky in designated pub viewing areas.
A Sky spokesperson said: "These ideas, amongst others, have been raised during our continual dialogue with the trade and its trade bodies.
"Although we have no plans to change our pricing structure at this time we have always and will continue to keep these matters under constant review to find the best way of providing Sky to pubs and clubs."
The British Beer & Pub Asso-ciation, which has not so far been included in the dialogue, made it clear it would be delighted to be part of any future talks.
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Industry views:
Federation of Licensed Victuallers Associations chief executive Tony Payne: "A combination of rateable value and floor space may be one way, but I hope there will be consultation with all sectors of the trade before anything moves forward. A floor-space system might sound good, but you have got to weigh up a lot of different factors. Assessing a charge on the number of people watching might sound good, but how long is a piece of string?"
Association of Licensed Multiple Retailers chief executive Nick Bish: "There are question marks over a floor space system of charging and how you assess the number of people able to watch Sky from any one area of a licensed premises. At the end of the day Sky still has to raise the revenue to pay the Premier League for the rights to screen matches."