Red Mist Leisure managing director Mark Robson said the rateable value (RV) of his pub the Queen’s Head in East Clandon, near Guildford, Surrey, has been increased from £17,700 to £50,300.
Business rates are calculated on the basis of turnover with a multiplier set by the Government applied, representing the number of pence in each pound of RV that is payable in rates.
The rates payable last year at the pub were £7,965 but they have now increased almost three-fold to £22,659.
As the business pays over a 10-month period this means an increase from around £800 a month to £2,265 a month. The RV is now double that of any of Red Mist’s other four pubs.
'Farcial'
Robson said: “The bill has come direct from the Valuation Office Agency (VOA) and we have not had any correspondence with them whatsoever. They base it on fair maintainable trade but have not had any information from us at all. They have just picked some figure out of the air and decided that is what they think is fair.
“For me this is how farcical the situation is. It is crazy.
“The VOA said to us it is based on the fact that the pub has been refurbished. It has, but it has not increased in size. So what they are effectively saying is ‘the more successful you are the more money we are going to take off you’, and that is not fair.”
Ratings professional
He said the company is now having to take on a ratings professional to appeal the decision. Until that is heard the company has to continue to pay the increased rates.
Robson added: “If I had an office next door the way they work the rates would be completely different. They wouldn’t base it on turnover, but on floor space. The business rates system is so flawed.”
A VOA spokesman said: “If the ratepayer thinks their rateable value does not reflect the rental value of the property, they should contact us to discuss it.”