Pubs overpay their fair share of business rates by £570 million a year, according to the British Beer and Pub Association (BBPA).
According to the trade association, the pub sector in the UK pays 2.5% of all business rates, despite accounting for just 0.5% of rateable turnover.
To aid the recovery of pubs, which were forced to close during three separate lockdowns and which still operated under heavy restrictions until recently, the BBPA is urging government to radically overhaul the business rates system.
The call from the trade association comes as it responded to HM Treasury’s consultation on business rates revaluations, and in particular revaluating business rates every three years.
According to the BBPA, in its response to the consultation, the multiplier (the rate in the pound that is then multiplied by the rateable value of a property to produce its annual rates bill) has increased to a ‘staggering’ 51.2p today, from 34.8p in the early 1990s.
The BBPA welcomes the government’s aim to provide more regular revaluations for pubs, in the hope that it will result in fairer rates for pubs due to more regular revaluations.
However, it has concerns that the proposed changes to the current system of revaluations will mean rates payers have to pay in order to access a better and more transparent tax regime, which it says is irresponsible.
Ultimately, the Business Rates regime needs radical change, which is why the BBPA is backing the Long Live The Local campaign, which is calling for Government investment in pubs by reforming Business Rates, in addition to VAT and Beer Duty.
A BBPA spokesperson said: “Root and branch reform of business rates is essential to the future of our sector, which is why we are supporting the Long Live The Local campaign calling for reform of business rates, in addition to reforming VAT and beer duty.”
