More rural pubs to get rate relief

More country pubs are to benefit from rate relief when the new rates start on 1 April 2010.

From that date, rural pubs with a rateable value up to £12,500 will benefit from transitional relief. The current threshold is £10,500.

The news was delivered in Parliamentary by Barbara Follett, Parliamentary Under-Secretary of State for Communities and Local Government.

She was asked if the Government would conduct an impact assessment of the effect of the 2010 business rates revaluations on pubs and other firms. It follows reports of huge increases in rateable values at many pubs, which is set to mean big hikes in business rates from April.

Follett said: "Regular revaluations are a statutory part of the business rates system and as such do not require impact assessments.

"However, we have carefully considered the impact of the 2010 revaluation on businesses, including public houses, and are introducing a £2bn transitional relief scheme for the minority facing increases. An impact assessment of that scheme has been conducted and was published on 17 November.

"From 1 April, we will also offer extra help to individual public houses in rural areas by increasing their rateable value relief threshold from £10,500 to £12,500."

Conservative MP Chloe Smith, who asked the question, replied: "Does she not agree that it is irresponsible not to conduct a full impact assessment on such policies, especially in the case in question?

"The distortions that accrue from using April 2008 property figures may bake property boom prices into business rates for pubs in urban areas and businesses next door to them."

Follett said the multiplier, set at a "17-year low" of 15%, and transitional relief, will address concerns.

However, last month property consultants Gerald Eve told the Morning Advertiser that transitional relief "a piece of astonishing spin" — as one in five pubs promised big cuts would get much smaller reductions in the short term.