Pledge to help over rates rises

29-Oct-2009 - Last updated on 28-Aug-2011 at 08:15 GMT

Licensees facing massive hikes in their business rates are to be helped through the appeals process by trade bodies. The newly-formed Independent...

Licensees facing massive hikes in their business rates are to be helped through the appeals process by trade bodies.

The newly-formed Independent Pub Confederation (IPC) and the BII have both vowed to take action to help publicans appeal unfair increases.

Licensees across the country have told The Publican how the new rateable values - made available from the Valuation Office and based on market rental values from April 2008 - have left them shocked and fearful that new rates bills could push them over the edge financially.

Kate Nicholls, IPC secretary, said: "At the moment the Valuation Office only talks to the British Beer & Pub Association (BBPA) so it is very much something we will be looking at.

"The IPC will be talking to licensees about what their options are and how they can appeal.

"We aim to be in a position to put their views forward to the Valuation Office."

Mitch Adams, licensee of the Thatchers Arms in Mount Bures, Essex, has seen his rateable value soar from £7,900 to £13,250. The rise could see him paying as much as £5,000 a year more.

He said: "Our current rateable value puts us below the rural rate threshold.

"If you are the only pub in the village and you don't have more than one business you qualify for a 50 per cent discount, which our local authority matches.

"The new rural rate threshold is also going up but I am going to be just over that."

Other licensees have revealed how their rateable values have quadrupled.

The BII is planning a package of proposals to help licensees including talking directly to local authorities - who apply business rates based on rateable values.

BII chief executive Neil Robertson said: "The evidence is still coming in and we are still waiting to see the full picture.

"If there is a problem in a particular area we will address that with the local authority."

He added the trade body hoped to finalise its plans in the New Year.

"There is a right of appeal and we will be looking at the best way of going about this," he said.

However, pubs in Wales were given a boost this week when the Welsh Assembly announced plans to lower the domestic rates multiplier - which is used to calculate rateable values - meaning rates bills are likely to go down.

The Federation of Small Businesses (FSB) has backed the move and is now urging the Chancellor not to raise taxes on small businesses or National Insurance contributions paid by employees in his upcoming pre-Budget report.

John Walker, FSB national policy chairman, said: "We need to see the government take on these practical proposals at a time when the country faces such financially testing times."