Pubs could save over £5k with new rates values

By Rebecca Weller

- Last updated on GMT

Respite: pubs could see a 58% tax cut with updated rates (Credit: Getty/Richard Drury)
Respite: pubs could see a 58% tax cut with updated rates (Credit: Getty/Richard Drury)

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Pubs could save an average of more than £5,000 under the new commercial property values introduced on Saturday 1 April, data from real estate intelligence firm Altus Group has revealed.

The new rateable values for non-domestic properties, which will be used to determine the basis of business rates​ bills for three financial years, reflect changes to the property market between 2015 and 2021.

According to the figures, publicans could save some £5,534 on business rates tax, equating to a tax cut of 58% compared with 2017. In addition, rateable values also decreased by 17%.

Much needed respite 

Altus Group global president of property tax Alex Probyn said: “These tax changes will bring much needed respite from the current high cost-of-doing business for high street firms.”

The Government also froze tax rates from 1 April, as part of a £13.6bn support package announced last Autumn, to protect firms from rising inflation.

The retail, hospitality, and leisure discount was also increased from 50% to 75% for 2023/24 up to a cash cap of £110,000 per business. 

However, Probyn warned “the freeze in tax rates and the bigger retail discount are just a 1-year commitment”.

The revaluations are the first for 6 years and follow last week’s pledge from the Government to conduct more frequent valuations​ in order to “reduce barriers to business investment”, according to Local Government Minister Lee Rowley MP.

Never-ending hurricane 

Revaluations also came into effect in Wales, Scotland, and Northern Ireland where business rates are devolved, over the weekend.

Rowley added: “This is another step in the right direction for making sure the UK continues levelling up and supports businesses to grow and flourish.”

However, the sector also saw a reduction to energy​ support on top of an increase to the National Living Wage (NLW​) come into force on 1 April, with the British Beer & Pub Association (BBPA) having calculated pubs need to increase turnover by 11% to break-even.

BBPA chief executive Emma McClarkin told The Morning Advertiser​: “Everybody keeps calling it a perfect storm but it feels like a never-ending hurricane.”

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