Community pubs tax bombshell warning

27-Sep-2009 - Last updated on 27-Aug-2011 at 06:28 GMT

Pubs, like the Black Swan in Selby, which include a post office may be hit with rate hikes

The Conservatives have warned of a "tax bombshell" for pubs that offer community facilities. Shadow Communities Secretary Caroline Spelman warned...

The Conservatives have warned of a "tax bombshell" for pubs that offer community facilities.

Shadow Communities Secretary Caroline Spelman warned of business rates hikes for "friendly" pubs that have diversified when new rate levels come in next April.

Spelman argues that business rates for pubs can increase by adding community facilities.

She added: "Community pubs play a vital rule in the fabric of society, yet pub sports, local football teams and beer gardens face being taxed. Even rural pubs that have diversified to survive and offer vital services like Post Offices, will get a kick in the teeth through higher tax bills — despite being previously encouraged to diversify by government agencies."

But in contrast, Fleurets rating expert Michael Yass said: "It is likely that pubs whose trade has been hit hard before April 2008 should see reductions in their rateable values."

A spokesman for the Valuation Office Agency, which carries out revaluations, stressed that there had been no change in how assessments were carried out.

"The more popular a pub is, and the better its facilities, then the greater the potential for trade and the higher the rental value is likely to be.

"Events and facilities such as pub sports, beer gardens and any diversification either provide an indication of the popularity and therefore likely potential trade of the pub or constitute facilities likely to enhance trade.

"Consequently, where the potential trade at a city centre pub is greater than that for a rural house, or vice versa, this will be reflected in their respective rating assessments."

The Department for Communities & Local Govermment said 60% of businesses would see falls in their rates bills next year. It added: "Business rates have been assessed according to their rental property value for 400 years and this has not changed."

Let us know how much you will pay in business rates in 2010.

Licensees are able to view their new rateable values online from this week at www.voa.gov.uk/2010.

Although it's not the final bill, the information will give hosts an indication of how much they must pay in rates. The MA wants to carry out a survey of ratable values - email yours to trzzn.zpxraan@jvyyvnz-errq.pb.hx. It can be anonymous if preferred.