Pubs paying second highest business rates bill in UK

By Emily Sutherland

- Last updated on GMT

The industry's total tax bill costs £7.3 billion
The industry's total tax bill costs £7.3 billion

Related tags Business rates Taxation in the united kingdom Economics Uk

British pubs are carrying one of the heaviest tax burdens in the UK economy according to a new report from Oxford Economics, paying six times more than justified.

The industry’s total tax bill comes in at £7.3 billion or £140,000 per pub-£800m more than the gambling and betting sector.

Oxford Economics, who carried out the report for the British Beer and Pub Association, found that the pub industry has a tax burden larger than many of the other sectors, with VAT excise duty and business rates the main burdens.

BBPA chief executive Brigid Simmonds said: ““This new report sets out the stark reality of the disproportionate tax burden bearing down on pubs. Without action to reduce this burden, more of our much loved community pubs will be under threat. The Chancellor has taken action on beer duty, and to relieve the burden of business rates on pubs in his previous two Autumn Statements, but there is no doubt that more relief and reform is needed."

Industry bodies have joined forces to demand a fairer deal for pubs on business rates in this week’s Autumn Statement, writing a joint letter to Chancellor George Osborne.

The BBPA, Association of Licensed Multiple Retailers, Campaign for Real Ale and others are asking Osborne to freeze the business rate multiplier, extend Small Business Rates Relief and apply Retail Relief- a scheme that provides a discount for pubs with a rateable value of £50,000 or less.

Research from the BPPA earlier this year revealed pubs are paying £500m more than their fair share in business rates, paying 2.8% of the UK’s total business rates bill but accounting for 0.5% of turnover.

Related topics Legislation

Related news

Spotlight

Follow us

Pub Trade Guides

View more

The MA Lock In Podcast

Join us for a Lock In