Trade slams unfair pub rating system

Pub operators and licensees claim crippling business rate charges are penalising successful businesses.

Hosts who have built up thriving outlets say the current method of calculating rates on business turnover is unfair and inequitable.

One north west-based company, Brunning & Price, is challenging new rating re-valuations in the courts.

The company, which runs 14 pubs in Cheshire, North Wales and Shropshire, says it rates bill sits way above charges levied on comparable size pubs. Average annual turn-over per pub is around the £1.25m mark, which has led to exorbitant rating demands.

Its food-led destination venues have been a major trade success story, but its hard work and efforts have come at a heavy price.

Company chairman Jerry Brunning said: "We believe the current system is a bad one and discriminates against operators like us who run a distinctive style of pub.

"We do not think this is fair and while we acknowledge it is a tricky business to establish an equitable system for everyone we would suggest something based on square footage would be better."

The company has already spent in excess of £50,000 preparing its case for Land Tribunal hearings and plans to appeal in respect of all its 14 pubs. "We made similar appeals five years ago after the last re-valuation and the Revenue conceded so we thought we had put all this to bed," he added.

Humberside pub operator, Shaun Rennison said the system was inequitable. "The system penalises success so if you run a successful business you pay more rates than the same size pub next door and that cannot be right or fair," he said.

Change could shut many pubs

Trade leaders fear hundreds of pubs could close their doors if the method of

assessing business rates was ever changed.

Federation of Licensed Victuallers Associations chief executive Tony Payne said business turnover, based on the ability to pay, was the fairest method.

"Hosts running big pubs with relatively low turnover would be hammered financially through a square footage method of charging.

British Beer & Pub Association director Martin Rawlings said there was an ongoing debate with the Rating Valuation Office.

"Whenever the matter is raised the ability to pay based on business turnover wins over the square footage method and the consensus has always been this way," he said.