Foot-and-mouth financial aid for trade

by David Clifton, one of thePublican.com's legal team.​

I was listening to Radio 4 on the day that Phoenix, the 13-day-old heifer from Devon, had been reprieved. The phone calls and emails from listeners had, not surprisingly perhaps, been more concerned with foot-and-mouth than licensing reform.

Licensing reform will happen, presumably. But life will go on. Everyone will moan about local authorities in the same way that they have moaned about the magistrates. But the after-effects of foot-and-mouth will have, or have already had, a devastating effect on many, including those in the pub industry.

Research by the Association of Licensed Multiple Retailers has shown that trade in rural pubs is down by on average 20 per cent. The British Institute of Innkeeping has reported 97 per cent reductions in worst hit areas as people have stayed away from the countryside. The Brewers and Licensed Retailers Association has calculated that the trade is losing £38m a month.

The industry is calling out for longer-term assistance from the Government. What can be done in the meantime?

• Reduced rates bills for small businesses badly affected by foot-and-mouth.

Businesses in affected areas with a rateable value of £12,000 or less will be eligible for a reduction of up to £1,290 in their rates bill for three months if they can show that they have suffered serious economic loss through foot-and-mouth. The Government will meet 95 per cent of that cost.

Businesses with rateable values above that level may be eligible to benefit from existing local authority hardship relief provisions in which the Government meets 75 per cent of the cost. The Department of the Environment is issuing guidance to all local authorities on the subject, so if you are affected, make contact with your local council.

Deferred payment of rates bills.

Local authorities have powers to defer the payment of rates to provide short-term help to businesses. Businesses can also apply to their local valuation office for a temporary reduction in their rateable value to reflect loss of business due to foot-and-mouth.

Appeals against business rate valuations.

In the 151 rural authorities in England, the deadline for appealing against business rate valuations, whether arising from foot-and-mouth or for any other reason, has been extended by three months from March 31 to June 30. Keep an eye on that time limit because changes in value arising from appeals made in these areas before the new deadline will take effect from October 1 2000, or the date of any change in the property, whichever is the later. Remember too the court of appeal decision reported in this newspaper in March reaffirming that pubs should not be valued as shops, but should be valued by reference to their trade and not the floor area they occupy.

Mandatory rate relief to sole village pubs.

Qualifying pubs - sole village pubs with a rateable value of less than £9,000 in a settlement of 3,000 people or fewer - are eligible to 50 per cent mandatory relief. It has been suggested that to have a qualifying rateable value, annual turnover is likely to be limited to about £120,000. Even if you do not apply to your local authority for relief until now, it will be backdated to the start of the financial year in April. Local authorities have discretionary powers to top up the mandatory relief to 100 per cent.