David Smithers: 'Piece of the Action' tax or 'Fair Maintainable Trade'?
It is outrageous how the police, the local councils and parliament in general are continuosly harping on about the "evils of binge drinking" on our streets, whilst it is often them who are putting outlets under pressure to sell vast quantities of alcohol.
Surely, if a large town centre establishment is being turned over for £2000, or more, per week in business rates, then the councils who receive this money are largely to blame for the problems caused by this culture? I don't see the licensing officers or trading standards addressing this issue?
I personally apportion blame for this tax at the feet of the civil servants. Local councils and local valuation "officers" I have found, are the worst people to try to deal with on this matter.
The money fleeced out of pubs each week has deprived small businesses of long overdue investment, particularly pubs. The sheer scale of this problem is overwhelming and has led to serious underinvestment in local and town pubs.
In the past I used to regularly turn down taking over the running of pubs which were offered to me because the rents were too high, coupled with the stealth rent/beer tie. But now I find myself being offered pubs by pubco's and agents for reasonable rents, but I am now being forced to turn them down because of extortionate and totally unacceptable business rates!
This problem has been out of control for a long time, but has now become an epidemic of disastrous proportions, it's time for everyone to do their bit, all pubs and small business must question the new rateable values and appeal against them, this gives you some time to arrange payments, as the collection departments of local councils generally leave you alone whilst an appeal is under way, though it is advisable to keep making some regular payments.
I feel I must warn you that these appeals are usually doomed to failure as the valuation officers seem to be hell bent on getting as much money from small businesses as possible, regardless of the destruction they are causing.
If you go to a tribunal you will see that there is no goalpost which will not be moved in an effort to crush your resistance to this tax.
In an effort to force change I would advise all publicans to get an appeal underway ASAP. You can download a form or launch an appeal online. You will need to prove there is a material change to your pub. A 'material change' is a physical change to an area or property or to the way a property is used.
Business Rates are collected by local councils, the money has to be sent to the government who then return a percentage back to the local councils, the local councils are legally obliged to collect this money.
If you wish to make an appeal, you will need to prove that your business has suffered a material change.
Examples of material changes could include:
- The Smoking Ban, which has now been accepted by the government as a "Material Change" - though I don't think the valuation offices or the tribunals have been informed yet!
- Alterations to the property itself, or how the property can be used.(if part of the building is uninhabitable, as is usually the case with pubco pubs, then there should be a reduction in Rates)
- A new development in the area
- Redevelopment in the area of the property
- Changes to the access routes to the area or property (such as road improvements/closures, or a new pedestrian footpath that improves footfall)
- Changes to the way other property is occupied in the area.
Changes in economic factors cannot be taken into account when considering an appeal.
