Outgoing chair of the All-Party Parliamentary Save the Pub Group, Greg Mulholland, has told The Morning Advertiser (MA) that one issue he plans to campaign fiercely on in the coming months is business rates reform for the licensed trade in his role as BPC chair.
"We have talked about our desire to be involved in a sector-wide campaign on business rates on pubs. We will be meeting with the BBPA to discuss this and will write to the ALMR, which we [also] hope to meet with.
"I think it would be very powerful if the sector as a whole, from pub companies to licensees to campaigners, worked together. It gives a clear chance of changing hearts and minds in Whitehall, which is what we will set out to do."
'Punitive for pubs'
Responding to Mulholland's call for campaign reform, the BBPA echoed its demand that the Government rethink the way business rates are calculated for pubs.
Business rates are currently calculated on fair maintainable trade for pubs, unlike other industries where rates are solely calculated on rent. The result is that high-turnover and south-east pubs are in for an alarming rates hike and the BBPA has reiterated its calls for this to be reconsidered.
"Pubs pay business rates based on turnover, but if we are not careful this is a tax on investment. We need the Government to look at how they can reduce the cost for pubs. The BBPA believes that pubs are overpaying their fair share of business rates in relation to turnover by £500m," the BBPA's chief executive Brigid Simmonds told MA.
"The whole industry is very much united on this and will continue to keep up the pressure. While many pubs have benefited from recent reforms, overall, business rates remain especially punitive for pubs, and there are thousands for whom revaluation will result in very high increases in their bills," she added.
Government must show willingness
The Government has recently introduced rate relief for broadband network providers and Kate Nicholls, the chief executive of the ALMR, believes that a similar reform in pub business rates is essential.
"The Government’s decision to grant business rates relief for broadband network providers shows willingness on its part to address concerns around the current system and implement sector-specific relief when necessary.
"Licensed hospitality venues currently face enormous business tax burdens, around a third of turnover for pubs, and the ALMR has been vocal in its assertion that this must change.
"With this is mind, we are once again calling on the Government to take action to drastically reduce the business rates burden being faced by licensed hospitality venues," she said.
A spokesperson for the ALMR also confirmed to MA that business rates would be the "main focus" for the ALMR in the coming months with new rateable values for pubs set to be issued in April 2017.