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Almost a third of pubs in England ‘exempt from rates payments’ from April

By Claire Churchard contact

- Last updated on GMT

Tax free: Durham has the most pubs exempt from rates from April
Tax free: Durham has the most pubs exempt from rates from April

Related tags: Rateable value, Metropolitan borough

Almost 30% of pubs in England won’t pay any business rates over the next five years, starting from April 2017 when new property valuations come into force, according to figures from rates experts CVS.

The data analysis, seen exclusively by The Morning Advertiser​, revealed that of the 39,826 pubs liable to pay business rates in England, 11,740 have a rateable value below £12,000 meaning they are exempt from paying rates under the new regime.

Durham County Council had the most pubs exempt from rates with 272, closely followed by Wiltshire Council with 225, and Cornwall Council with 178. Most pubs in this band were in the Midlands and north of England (full list below).

The data also shows that of the remaining 28,086 pubs, 24,375 have a rateable value under £100,000, making them eligible for the new £1,000 rates discount* announced in the Budget. The south-east region has the most pubs eligible for this discount with 4,545 sites with a rateable value between £12,000 and £100,000 (full list below).

Interestingly, less than 10% of pubs, 3,711 of the largest sites, have a rateable value above £100,000 and, therefore, do not qualify for rates discount.

However, any pub facing large increases in business rates will be able to apply for a slice of the £300m five-year hardship fund regardless of its rateable value.

CVS chief executive Mark Rigby said: “We specifically asked for discounts to rates bills for small pubs.

"That demand was met and both the Chancellor and secretary of state should be congratulated on listening to the concerns of landlords of small pubs but, more importantly, acting upon those concerns with meaningful financial help."

He explained the number of pubs that have closed during the current tax regime is 11,443.

Researchers examined figures from the Government’s own valuation agency, looking specifically at the ratings list for the pub category.

*The £1,000 discount is subject to state aid limits for businesses with multiple properties.

Top 15 council areas by rates-exempt pubs

Rateable value 2017 band

Under £12,000

Billing Authority

Number of Pubs

Durham County Council

272

Wiltshire Council 

225

Cornwall Council 

178

East Riding of Yorkshire Council

173

Kirklees Council

171

Liverpool City Council

160

Leeds City Council

151

Shropshire Council

146

Herefordshire Council

144

Northumberland Council   

140

Bradford Metropolitan District Council

140

Sandwell Metropolitan Borough Council

125

East Lindsey District Council

120

Bristol City Council

115

Birmingham City Council

111

Regions

Pubs with rateable value over £12,000 and under £100,000

East

2,467

East Midlands

2,176

London

2,554

North-east

1,102

North-west

3,476

South-east

4,545

South-west

3,089

West Midlands

2,390

Yorkshire/Humberside

2,576

Grand Total

24,375

 

Top 15 council areas eligible for pub discount

Rateable value 2017 band

Over £12,000, under £100,000

Billing authority

Number of pubs eligible for £1,000 discount*

Cornwall Council

391

Leeds City Council

294

Shropshire Council 

283

Sheffield City Council

280

Wiltshire Council

262

Cheshire East Council 

247

Manchester City Council

236

Birmingham City Council

227

Liverpool City Council

224

Cheshire West and Chester Council

208

Brighton and Hove City Council

207

Bristol City Council

203

Westminster City Council

192

Bradford Metropolitan District Council

192

Durham County Council

191

 

Related topics: Property law

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