Pubs paying £500 million more than their fair share in business rates

By Emily Sutherland contact

- Last updated on GMT

The BBPA has found pubs paying £500m extra in business rates

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The British Beer and Pub Association have called for ‘urgent reform’ after finding England’s pubs are paying almost six more times in business rates than can be justified by their turnover.

According to the BBPA, pubs are paying an annual tax bill that is £500 million above what they should be paying.

Brigid Simmonds, BBPA chief executive said: “Many high street businesses are being damaged by unfairness in our rating system, but it is a particular problem for pubs. We need a system that is both fairer overall, and much more responsive to the needs of businesses like pubs.

“Pubs and the wider hospitality industry are hugely important to local communities, to the high street and to our tourism industry, and are a key engine of job creation. This review is a huge opportunity to address some of these crucial issues, through wide-ranging reforms. The Government deserves credit for raising these huge issues, and we mustn’t lose this opportunity.”

The findings show that pubs and bars pay 2.8 per cent of the total UK business rates bill but account for just 0.5 per cent of business turnover. The BBPA says it wants a major overhaul and a system that more closely reflects modern Britain’s economy, including as on-line sales, instead of the current purely property-based system.

The BBPA is also arguing that the current rate system has not kept up with the reduction in sales experienced by the industry in recent years.

Do you think that business rates need to be reformed? Call 01293610226 or email Rzvyl.fhgureynaq@jeoz.pbz

Related topics: Legislation

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