Red alert over

rating cowboys' by Richard Matthews Licensees are being warned not to part with money upfront to any companies offering to negotiate rate reductions. A number of publicans have been left hundreds of pounds out of pocket by the collapse of Marann Brooks, a firm which promised to get their rates reduced in return for an upfront fee, coupled with a percentage of any savings. Hosts are being urged to check with trade organisations before employing the services of rates companies. Licensee Martin Goldsmith, of the Alexander Tavern, Kingston, Surrey, is owed £495 after paying the company to handle his rate negotiations. Alison Harrison, a Unique Pub Company lessee, of the Shoeburyness Hotel in Essex, said she parted with almost £1,000 aftera representative from Marann Brooks said he was hopeful of securing a rate reduction. "I paid the fee last May and was told if my rates were reduced I would also have to pay a percentage of the first year's reduction," she said. "If the company could not get the rates reduced then I understood the fee would be refunded. "I heard nothing further from them but I kept phoning and they told me everything was going through. I expected things to be finalised for next month and now I understand they've gone intoliquidation." Chief executive of the Federation of Licensed Victuallers Associations, Tony Payne, said he recommended four different rates companies to his members, and they were all carefully vetted. "There are a number of reputable companies but many cowboy companies are also operating in this market," he said. He stressed licensees should not part with money upfront. "It's far better to work on an agreed figure or percentage based on the cash savings achieved through a reduction being gained. "Remember, it's not good enough to have the rateable value reduced. It's the rates paid that matter and this should be looked at over one year rather than five. "Of course, it's not necessary to use a rating company at all. It's possible for licensees to handle the whole process themselves but I would suggest taking advice first." Rating expert Peter Monckton-Milnes, of London-based specialist Fuller Peiser, said licensees should never part with money upfront to companies. "There are a lot of fly-by-nights in this business with no ethics or code of conduct to adhere to," he said. "Licensees should make sure companies they deal with belong to the Royal Institute of Chartered Surveyors and they have the protection of a code of conduct.