Rateable value reduced for pubco

Award-winning pub company Brunning & Price has had the rateable value at one of its pubs slashed by proving its high turnover was down to its exceptional ability as an operator.

Despite the triumph for Brunning & Price, the result will not have an knock-on effect for other pubs. The pubco won a ruling at the Lands Tribunal reducing the rateable value at the Glasfryn pub in Mold, North Wales, from £70,000 to £62,500.

Rateable value calculations are currently based on an Inland Revenue estimate of the annual rent, excluding living accommodation, at which a property could be let on the open market taking into consideration turnover, profit and location.

The pubco, with 14 pubs mainly in the North West, argued being named Good Pub Guide pub group of the year in 1997, 2004 and 2007 proved it was an exceptional operator. This week the Glasfryn was also named Welsh Pub of the Year in The AA Pub Guide 2008 (see story, left).

It also pointed out that it had made a great success of many venues which had failed under several different operators because of its expertise rather than the pub's location or facilities.

Although Brunning & Price sought a reduction to £31,500, ratings expert David Morgan of Cookseys DMP said a drop of around 10% in successful appeals was standard.

"It's a good result for them and although it's a rare win, it sets no precedent for others," he said. "You really have to prove you are an exceptional operator to win and awards help to do that."

The rateable value reduction will be backdated to

1 April 2004.

Deadline for rate relief approaches

Licensees wanting to apply for small business rate relief have until 30 September to submit applications and will have to wait until 2010 if they miss out.

Previously the Government had allowed businesses to apply on an annual basis but changed the system last year, meaning the next round for applications will be September 2010.

Rate relief of up to 50% is available to pubs with a rateable value of less than £15,000 (or £21,500 in London).

"Many business owners will be unaware of this deadline," said Philip Moody of the Forum of Private Business. "People need to check their rates to see if they are eligible and get their applications in." Contact your local authority for more details.