Pub property agents welcome business rates reform

Property agents have welcomed a potential reform of business rates, stating that the current system is an “over complicated, onerous tax burden” to the pub trade, following the Government’s announcement outlining the details of the upcoming rates review last week.

Treasury minister David Gauke said the review will look at whether business rates revaluations should occur more frequently, examine the valuation methods and study the billing and collection process, including how exemptions and deductions are applied.

'Wholesale overhaul is much needed'

Tom Nichols, managing director at Everard Cole, said he welcomed the review, but added that the Government is “tinkering with [the rates system]”, rather than looking at a “wholesale overhaul, which we believe is much needed”.

“While we all benefit from the services paid for by business rates, the current system has become an over complicated, onerous tax burden to most organisations, especially pubs,” he said.

'Misleading and unfair'

“The relevance of historic revaluations over five years ago is misleading and unfair in many cases as areas, demographics and businesses change much more quickly in the modern world. 

“There may be some merit in starting with a clean sheet with an impartial assessment of current business rates with more regular revaluations, some cap and collar to annual rises across the board and a more fair, quick and open appeal system.”

He added that George Osborne’s pledge to cap an increase at 2%, rather than 3.2% as expected, and the £1,000 discount for small businesses is welcome, but “only small fry”.

'Welcomed'

Christie+Co’s director and head of pubs Neil Morgan also applauded the potential reform: “Any measure that can help to reduce operator costs has to be welcomed,” he said. “A move to reduce the burden will certainly help pubs in the more rural locations where customer numbers and, therefore, revenues are in decline.”

Practical difficulties

Tim Beattie, lead director in Jones Lang LaSalle’s rating team, said the two-year rate relief proposal is welcome news, but the Government’s expectation for local government to grant relief using existing discretionary powers is likely to present “some practical difficulties”.