Lack of relief may close pub

Council accused of finding excuses over rural rates

A local authority in Essex has been accused of finding excuses not to implement the new mandatory rate relief system for rural pubs.

Licensee Scouse Crathern, of the Blacksmith Arms in Mistley Heath, warned last week he could be forced to shut his pub if his local council does not change its mind and grant him the rate relief he believes would save him financially.

Mr Crathern thinks he should qualify for the mandatory 50 per cent rate relief because the rateable value of his pub is less than £9,000 and it is the only pub in the "rural settlement".

But Tendring District Council, which administers the rate relief, has told him Mistley Heath is part of Mistley - a larger, more built-up area nearby which includes five other pubs.

This means the Blacksmith Arms does not qualify, despite the council's local plan which designates Mistley Heath as a separate settlement.

Until the problem is sorted out Mr Crathern is continuing to run his pub but is struggling financially. He is angry that the council has found an excuse not to provide the much needed financial aid.

"There can't be a pub more deserving of rate relief than us," Mr Crathern said. "We're most certainly struggling. I work full time because there's no way I could earn a living from the business. We're only just staying open but I feel the locals appreciate us and we owe it to them."

Mandatory rural rate relief was announced by the Government in March. It means pubs in single pub villages with a rateable value of less than £9,000 are eligible. Councils were also given the power to raise the 50 per cent relief to 100 per cent at their discretion.

But despite the move being welcomed by the trade, some licensees were concerned few pubs would qualify.

Mr Crathern said: "Mandatory rate relief would mean the difference between surviving and going under. Something like 20 per cent of every pound we make goes in rates but it's a drop in the ocean for the council."

The Blacksmith Arms has collected locals' signatures for a petition showing support for the pub and Mr Crathern is now waiting to see what the council decides.

But a spokesman for the council said Mr Crathern's claim had not yet been rejected.

He said the council was aware of the Blacksmith Arms' case. "We haven't turned him down flat but there's nothing we can do at the moment. However, later in the year we will be reviewing our settlement areas and we will look again at this case," he added.