Government ‘would consider business rates assessment change for pubs’

Speaking in Parliament this week Lewis said the Government was inviting views from publicans on business rates reform and admitted the Government was open to discussion.

Responding to a question from Charlotte Leslie he said: “Decisions on rateable values are made independently of ministers by the Valuation Office Agency. All rateable values are based on the rental value of the property and for public houses rates are based on actual rents paid by tenants. Ratepayers should contact the Valuation Office Agency if they are concerned about their rateable value and may appeal to the independent Valuation Tribunal if their dispute cannot be resolved.

“As part of our review of business rates administration, the Government will consider options for arriving at a rental based assessment for non-domestic properties including public houses and the discussion paper, published last month, invites views on this issue.”

Overheads​

Kate Nicholls, strategic affairs director at the Association of Licensed Multiple Retailers (ALMR), said she was delighted the review of business rates would cover the way in which rateable values are assessed.

She added: "Property costs and taxes are the second largest overhead for pub operators after staffing and on average pubs pay 15p per pint in rates as opposed to 1p a pint for supermarkets. There is little doubt that local business taxes hit property based high street businesses like pubs, clubs and bars hardest and we have borne the brunt of increases in recent years. We will be actively engaged in inputting into the Government’s review and will be meet with officials shortly in response to the discussion paper”

The discussion paper on administration of business rates can be accessed here​. Responses will be accepted until 6 June.