Sky plans new pub fee system
Sky's new system for calculating pub fees is to be in place by the time new business rates take effect next April, the broadcaster says.
It could be a significant move as fees are currently based on rateable value — and these are set to rise 23% on average from next April.
A Sky spokeswoman said: "With the change in rateable value coming up we have the opportunity to completely re-look at [how we calculate fees] to find a better way, if there is one, of relating the value of the product to the price we charge.
"We would expect any change to be brought in before the changes to rateable values, which will take place in April 2010."
The Morning Advertiser understands that ideas under discussion include capacity of venues and square footage.
Several licensees have contacted the Morning Advertiser with fears about the knock-on effects of business rates rise on their Sky costs.
Steven Drover, Punch lessee of the Free Horses at Long Hanborough, Oxfordshire, is to see his business rates quadruple from £4,350 to £16,250 — and expects his weekly Sky fees to rise from £80 to £200.
"If it was just the increase in business rates, it would hurt a little bit, but the extra fee for Sky would finish the business," he said.
