Pubs to face £350 business rates hike unless multiplier is frozen, warns BBPA
The organisation said today's RPI (Retail Prices Index) inflation figure of 2.3% points to a £15m rise in business rates for community pubs, meaning a typical pub would face a £350 rise in the bill to £15,000 from April 2015. The business rates multiplier is used to calculate rates increases each year.
The BBPA is calling for “wholesale reform” of the business rates system, which it says places a far too high burden on businesses, particularly small, family-owned ones like the typical pub. It added rates can account for up to 10% of a pub’s operating costs.
As well as a freeze in the business rates multiplier, it is lobbying for an extension of Small Business Rate Relief to the end of the valuation period (2016-17), a raise in the threshold at which businesses qualify for this relief to £18,000, an improvement in billing and application of reliefs, and for the Government to deliver reforms to the administration and appeals process “at the earliest opportunity”.
'Unsustainable pressures'
BBPA chief executive Brigid Simmonds said: “Business rates are placing unsustainable pressures on pubs, which is affecting jobs and investment, as well as damaging our high streets and villages.
“We have seen a lot of positive action from the Government in the past year, such as the existing cap on the rates multiplier, the application of retail relief, and the extension of Small Business Rate Relief. But the burden remains high and more needs to be done.”
Community pubs minister Kris Hopkins said: “Pubs are an important part of our communities and the Government’s long term economic plan is supporting them with lower taxes, despite the need to pay off the deficit left by the last Administration.
“We have already taken targeted action, including providing more than £1 billion of business rates support, introducing a new £1000 discount and doubling small business rate relief - helping an estimated half a million small firms including local pubs and bars.
“In addition, we have abolished unpopular beer and alcohol duty escalators, axed cider tax and made a pint 8 pence cheaper than under the last administration’s beer duty plans. We have also given local people rights to protect their favourite pubs and nearly 500 are now registered as community assets.”
“The Chancellor will carefully considering the range of representations the Government has received on business rates at the time of the Autumn Statement.”
