1 in 7 pubs in England face rises in their business rates bills of nearly £5,000 despite measures announced by the Chancellor at his Autumn Budget earlier this week as analysis shows medium sized pubs were the big losers in Hammond’s ‘Budget for the high street’.
The Chancellor sought not to extend the £1,000 pub discount for those pubs with a rateable value under £100,000 which has been in place since the 2017 business rates revaluation opting for a wider reaching retail relief for properties such as shops, pubs, restaurants and cafes.
Whilst the Chancellor will slash business rates next April by discounting rates bills by a third for those retail properties with a rateable value of less than £51,000, the change in reliefs have left medium sized pubs facing a ‘triple whammy’ of rate rises.
According to Altus Group, 5,520 medium sized pubs with a rateable value of more than £51,000 but less than £100,000, will not only lose the £1,000 discount but will see their bills rise through an increase of 2.4% in the standard tax rate in accordance with September’s headline rate of inflation.
Further large increases, under last year’s controversial revaluation, continue to be phased in and next April under the third year of the system of ‘capping’, medium seized properties face further rises of upto 20%.
Analysis of official government data by Altus Group shows 5,520 medium seized pubs, those with a rateable of more than £51,000 but less than £100,000, will see their business rates bills rise next April to £192.21 million overall representing a third year cumulative increase of 15.45% with bills up £25.72 million compared to the amounts paid in the final year before the revaluation came into effect.
Average Medium Seized Pub’s Rates Bill:
2016/17 – £30,160
2017/18 – £30,579
2018/19 – £32,281
2019/20 – £34,820
Whilst nearly 30% of all pubs in England are exempt from paying business rates all together having a rateable value below £12,000, the new retail relief will see 47% of pubs, those with a rateable value between £12,001 to £50,999, move from a £1,000 discount to a third off their bill next April.
|Rateable Value||Pub Numbers In England||Budget 2018 Help|
|£51,000 to £99,999||5,520||Nothing – Worse Off|
|£12,001 to £50,999||18,855||Third Off Rates Bills|
|Less than £12,000||11,740||Complete Exemption|
|Source: Altus Group|
David Shuttleworth, Vice President at Altus Group, says: “Despite this meaningful statement of support for some smaller premises, the qualifying thresholds for the Chancellor’s headline giveaway effectively creates a cliff edge for medium sized pubs and has swept from underneath them existing reliefs to cushion the effects of the revaluation.
“It is crucial that medium sized businesses carefully check their assessment which determines liabilities because a successful appeal could mean a third off the rates bill for the next 2 years via the new relief and the additional benefit of being calculated at a lower tax rate too.”