Rates holiday for pubs
Thousands of pubs will pay no business rates for a year — or will see rate relief double — from October.
The Morning Advertiser can reveal that 4,070 pubs — those with a rateable value (RV) under £6,000 — fall within the threshold for the rates holiday announced in last week's Budget.
In addition, all 10,058 pubs that claim Small Business Rate Relief (SBRR) and have an RV between £6,001 and £12,000 will see their discount double. According to figures from the Valuation Office Agency (VOA), 14,128 of the 45,999 pubs in England qualify for SBRR.
Under the SBRR scheme small businesses already receive up to 50% reduction in business rates. But the doubling of discounts means that a pub with an RV of £9,000 would now save an extra £915 — a total saving of £1,831.
However, the downside is that licensees with more than one business will not qualify for the discounts under the Budget announcement.
Michael Yass, rating expert at Fleurets in London, said: "It is pleasing to see that there is now real support for small businesses.
"In addition to nil liability for occupiers of properties with RVs of less than £6,000, it is excellent that all small businesses will receive enhanced savings in rates liability from October. The number of pubs this will help is significant."
Carol Anderson, Punch lessee of the Broadshaven in Potter Heigham, Great Yarmouth, already saw her RV fall £8,000 to £5,500 with the new valuations that came in today (1 April).
The Chancellor's an-nouncement is an extra bonus — meaning she won't pay any business rates for a whole year from 1 October.
Anderson said: "It's a godsend. That's one good thing Darling has done for small businesses at the moment."
She said she planned to spend the money saved, more than £100 per month, on decorating the pub.
Jerry Schurder, head of rating at property consultancy company Gerald Eve, said: "For those who qualify, it is a very good news story."
Jim Yarwood, rating expert at Fleurets, Birmingham, welcomed the news, but said the Government was "giving with one hand, and taking away with the other".
He said some small businesses were being penalised since SBRR was ignored when applying transitional relief, which means dramatic rates changes are phased in.
Last year the MA revealed a Fleurets survey that showed the average pub faces a 23% rise in RV from this month. The rises have become a big political issue.
Last week the Conservatives highlighted the above-inflation rises when they accused Labour of letting community pubs "go to
the wall".
