Pubs face shocking rates rises

Pubs are facing a huge hike in their business rates from next April, with fears that some will be forced to close in the wake of the increases.

Licensees are now able to see what their new rateable value will be, applicable from next April, after the Valuation Office Agency (VOA) made the figures avaiable on its website.

The new business rates, updated every five years, are based on market rental values as of April 1, 2008.

Peter Wilkinson, licensee of the Raddle Inn, in Hollington near Tean, Stoke, said his rateable value was going up from £16,000 to £28,000.

"I was expecting a bit of an increase because my turnover has gone up and we've added some other facilities, such as log cabins, but nothing like this - it's nearly doubled," he said.

"I'm going to appeal the rate, but I might have to shut because my margins are being cut all the time. My electricity bill has gone up 50 per cent in the last 12 months."

Wilkinson's story confirms fears that pubs that have diversified their businesses will be hit with major rates increases.

And Andy Brooks, licensee of the Laughing Fish, in Uckfield, East Sussex, said his new bill was "horrendous" and had quadrupled over the five-year period. His rateable value is going from £14,500 to £29,750.

Other licensees The Publican ​contacted were still in the dark over what their new bill would be, but expressed concern over how they would be affected.

However pubs hit by a big hike can spread out their payments under transitional rate relief, although licensees in Wales miss out on this.

Some pubs are also eligible for small business rate relief if their rateable value is below a certain level, but this is decided by local councils.

A spokesman for the VOA said: "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."

• For more information visit the Valuation Office Agency website at www.voa.gov.uk​