Rates 'backtracking' welcomed by sector

Reports that the government is to change how business rates are calculated for pubs have been welcomed by the sector.

John Webber Head of Business Rates at Colliers said: “We are pleased to hear the Treasury is reported to be backtracking and is taking on board the cry from the pub sector about how punitive business rates rises are going to be when the new list comes into force next April. Based on massive increases in rateable value and a smaller multiplier-that was just not small enough, the current policy would lead to some pubs facing over 100% rises in their business rates bills over the next three years. This would do nothing to halt the rate of closure of pubs we are seeing across the country.

“However, it beggars’ belief that the government did not think about the consequences of its policies when it introduced them, when it set the multiplier levels and when it totally removed RHL (retail hospitality & leisure ) from the sector. A proper impact study should have been carried out then.

“And if the government acknowledges business rates are too high for the pub sector, what about all the other sectors seeing steep rises- such as independent retailers, restaurants, hoteliers, and offices and industrial occupiers too? Rather than bringing in fundamental reform, the government used its Budget to inflict a 10.2% increase on business rates bills on UK plc next April, increasing the tax take from £33.6 billion to £37.1 billion. This is unsustainable given all the other costs UK businesses are facing.”