Midlands pub rates to rise by 424%

A West Midlands pub has been hit with a 424% increase in business rates over five years following the 2010 revaluation.

The Round of Gras at Badsey in Evesham, Worcestershire, has seen its rateable value rise from £17,000 to an astonishing £72,000.

Graham Brown, licensee at the pub said: "I don't think I will be there in April 2010 — it's another nail in the coffin for successful pubs."

Brown currently pays £895 per month, and taking into account transitional rate relief, it is estimated he will pay £949 per month in 2010. This will rise proportionally each year of the five-yearly revaluation period until he pays his full business rates liability in the final year.

Meanwhile, Luton host Declan Sheeran, whose business rates will fall, also hit out at the revaluation saying, "it needs to come down by a further 50%".

Sheeran, of the Roman Way, said his bill would fall from £18,456 to £18,250.

But the "crippling" rates are running at 12% of his turnover. This is despite trade falling 45% in the past two years, which Sheeran attributed to the smoking ban, supermarket pricing and the recession.

Business rates are assessed according to a property's rental value, which is affected by trading levels. Rates are recalculated every five years, and businesses will receive new bills in April 2010. Pubs can find out their new rateable values by going online to voa.gov.uk/2010, and copies will also be posted out this month.