Sky to freeze prices until further notice

Sky charges for pubs will be held "until further notice" and won't change with the introduction of new business rate levels on 1 April.

The fees are currently based on a pub's ratable value so the news will be welcomed by licensees who are expecting big hikes in business rates.

But it's a blow for those whose rates will reduce — one licensee whose rateable value has fallen sharply told the Morning Advertiser "it's just not fair".

Sky has been consulting with the industry — as well as liaising with the Government and the Conservatives — about reforming its price structure.

A Sky spokeswoman said: "Following the recent changes to the government's non-domestic rating system, and in light of Sky re-evaluating whether this system is the most appropriate method of charging customers, Sky has taken the decision to hold all current subscription levels until further notice.

"In due course we will contact all commercial customers to let them know what pricing structure we'll work to moving forward."

Enterprise Inns lessee Terry Miller was told his Sky fees will remain at £966 per month after 1 April - despite his rateable value falling from £17,500 to £9,500 after the latest five-year revaluation. He expected monthly fees to fall to £640.

Annual barrelage has fallen significantly since the 2005 business rates levels were calculated, said Miller, of the Lion Hotel in Atherton, Greater Manchester.

"You would think Sky would have a bit of common sense," the licensee said. "It's just not fair.

"We took Sky on under the pretence that our rates would go down and Sky would be a reasonable price."

Curiously Miller, who took on the Lion earlier this month, said he was told Sky's charges would have been based on the 2008 ratings list if the pub had appealed its new rateable value — the previous licensee didn't do this because the level fell.

He now plans to appeal his rateable value in a bid to force down his Sky fees.