Hope is building that the government is getting set to announce a climbdown in steep business rate rises for the hospitality sector.
It is thought there could be a change in the way the business rates are calculated by reducing the multiplier. Or extra money could be put in a relief fund, which the government has already announced.
“It’s welcome news that the government appears to have finally accepted that vital changes are necessary to help our much-loved community pubs,” said Andy Slee, chief executive of the Society of Independent Brewers and Associates (SIBA). “The planned alterations to business rates would have had a devasting impact on our pubs and breweries.
“While common sense seems to have prevailed, it is essential that the government now acts in good faith to ease this financial pressure in the short term and reassure the sector that a meaningful long-term solution to business rates will be sought alongside a proper plan to maintain our pubs into the future.”
John Webber, head of business rates at property agent Colliers, said: “Based on massive increases in rateable value and a smaller multiplier that was just not small enough, the current policy would lead to some pubs facing over 100% rises in their business rates bills over the next three years. This would do nothing to halt the rate of closure of pubs we are seeing across the country.
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“However, it beggars belief that the government did not think about the consequences of its policies when it introduced them, when it set the multiplier levels, and when it totally removed RHL (retail, hospitality, and leisure ) from the sector. A proper impact study should have been carried out then.
“And if the government acknowledges business rates are too high for the pub sector, what about all the other sectors seeing steep rises, such as independent retailers, restaurants, hoteliers, and offices and industrial occupiers too?
“Rather than bringing in fundamental reform, the government used its Budget to inflict a 10.2% increase on business rates bills on UK plc next April, increasing the tax take from £33.6bn to £37.1bn. This is unsustainable given all the other costs UK businesses are facing.”
Emma McClarkin, chief executive of the British Beer and Pub Association, said: “News that the government is going to look again at business rates increases is potentially a huge win for pubs across the country, and shows government have not only listened to our concerns but acted.
“This could save locals, jobs, and means publicans can breathe a huge sigh of relief. The BBPA has worked closely with ministers on a pub-specific solution that would ensure that bills are reduced in line with the government’s previous promises to pubs. We now keenly await to see the detail of the upcoming announcement.”
