MP: pubs kept in dark over chance of rates cut

Tax chiefs are accused of keeping licensees in the dark about the possibility of getting their business rates reduced.

Claims from Conservative MP Greg Hands have been denied by the Valuation Office Agency (VOA), which sets business rates.

Hands said Government has made "no announcement" about new guidance from the VOA that says refunds could be available at pubs hit by the smoking ban.

Hands said: "Pubs could use this to make a claim for a lower rateable value and thus cut their yearly rates bill. For example, a £5,000 reduction in rateable value would save publicans £2,300 a year in tax."

The Hammersmith and Fulham MP also criticised the "complex" paperwork needed for appealing rates.

"The Government is happy to hike tax bills, but it will not tell people when their tax bills could fall.

"Whatever people's views on the smoking ban, it has been a significant change. The Government's own tax inspectors have now admitted that pubs may be eligible for refunds on their business rates, but pub owners were deliberately kept in the dark on this u-turn. This is yet another tax cover-up from the inspectors who conspired to hide council tax errors.

"Ministers only seem to be interested in changing the tax system when it raises extra money for Gordon Brown's coffers. Thanks to Whitehall secrecy, local firms are going to the wall and everyday pub goers are being hit in the wallet."

A VOA spokesperson said: "The VOA consistently applies a statutory framework when determining rating assessments, ensuring fairness across all business occupiers. On occasion, matters of interpretation do arise which are not readily resolvable and these require reference for legal advice or determination.

"The initial line taken by the VOA in relation to the smoking ban was that it would not by itself give grounds for a reduction in rates - in technical terms, that it did not constitute a 'material change of circumstances.

"However, having received legal advice on a case in May, we have changed our view, and are now accepting this as a valid ground for appeal against the existing rateable values of a range of property classes including public houses.

"The VOA will have to weigh up a number of factors in discussing these appeals: the ban has not had a uniform effect across the pub sector, and ratepayers will no doubt consider their individual positions before deciding whether to appeal.

"Submitting an appeal is straightforward, can be done either online or in paper copy, and staff in our local offices are able to help with any queries.

"We have taken a number of steps to ensure that the revised approach is widely understood. The VOA has discussed the issues with trade associations and rating advisers through the summer.

"We have also made efforts to contact all those businesses that had made appeals earlier on, which were originally treated as invalid, to tell them about the change of view. Once the information is available to progress cases, the VOA will deal with them as quickly as possible."