The British Beer and Pub Association (BBPA) has welcomed the extension of small business relief for another year, announced in the Chancellor’s autumn statement yesterday.
With one third of pubs qualifying — 15,000 in total — the measure had been something the organisation had specifically requested.
It was disappointed, however, that Mr Osborne had not extended retail relief for a further year, which the association views as effectively a £1,500 tax increase for the majority of pubs, adding £46 million to pubs’ rates bills.
BBPA chief executive, Brigid Simmonds, said: “Retail relief was providing a discount for pubs with a rateable value of £50k or less, which is 75% of all pubs. This is a particular problem in the run-up to the revaluation in 2017 as rates bills have become out of kilter with the value of individual businesses.
“Britain’s pubs face a total tax bill of £7.3 billion per year, so we will be keeping up the pressure for further measures, such as more action on both beer duty and business rates, as we move towards the Budget in March.”
She added: “I do welcome the announcement that small businesses like pubs will typically not be burdened with the apprenticeship levy, as this would have placed an excessive burden on what are mostly small businesses. It is crucial that the levy system is straightforward and allows those that pay into the levy fund to access their full contribution to support apprenticeships.
“I also welcome the £40 million for Visit England to fund product development, given the vital role that pubs play in the wider tourism industry.”
Tim Page, chief executive of the Campaign for Real Ale (CAMRA), said: “We are disappointed that the majority of pubs in England face a £1,500 increase in the amount they pay each year in business rates due to the Chancellor’s decision to discontinue the retail relief scheme.
“At a time when pubs are being lost at the rate of 29 a week across the UK, it is vital that further action is taken to reduce the tax burden on pubs.
“The decision to axe the £1,500 business rate reduction that was benefiting most pubs increases the importance of a further cut in beer duty in 2016 and the need for longer term reform of business rates to reduce the burden on pubs that are so important to local communities.”
