The smallest pub in Edinburgh has had its business rates bill quadrupled after Lothian officials decided it did not qualify as a small business.
The Halfway House, one of the city's best-known pubs, is now faced with an annual bill in excess of £8,000. The business rate was previously under £2,000.
Licensee Steve Whiting said: "It is a two-fold hike in the rateable value. First, the rateable value was doubled, which put it over the amount to qualify for a 50% discount for small businesses.
"So the amount was doubled again. If the smallest pub in the city is not deemed a small business, then what is?"
Whiting, who took over the pub a year ago, has appealed to Lothian Valuation Joint Board (LVJB).
He does not expect the case to be reviewed until much later in the year.
Whiting thinks other pubs are in the same situation and face steep rises in their business rates.
"We are just an easy target. What annoys me is there was no consultation prior to receiving the demand."
He has already laid off one member of staff from the Halfway House, which was voted Edinburgh Pub of the Year 2009/10 by the local branch of the Campaign for Real Ale.
A LVJB spokesman said: "The rateable value of the Halfway House has been arrived at following a detailed analysis of rentals to turnovers passing for licensed properties at the statutory date (April 2008).
"The increase in rateable value reflects the increase in turnover attained in the property."