Business rates are a major cost to pubs, who pay a disproportionate amount compared to other sectors. In April 2017 there was a revaluation of rates across the UK, with many pubs seeing further significant increases. We believe major reform is required and until that point additional relief should be given specifically for pubs.
03 January 2018
21 February 2019
The British Beer & Pub Association (BBPA) has today commented on the publication of a report by the Housing, Communities and Local Government Committee on high streets and town centres. The report follows an inquiry to which the BBPA gave evidence. Commenting on the report, Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said: “As a member of the Government’s Future High Streets Forum, the BBPA has called consistently for the Government to help high streets and town centres. We were also delighted to give evidence to the Housing, Communities and Local Government Committee on the matter. The Great British High Street’s competition and the new fund for high streets announced in the Budget are both very welcome initiatives, but there is more to be done. “As highlighted in the BBPA’s evidence to the Committee, the current business rates system penalises businesses like pubs for investing in their property, as improvements lead to rates rises. The Committee’s recommendation of exploring the introduction of a 12 month ‘holiday’ on these rates increases is most welcome. This would be a positive step forward in regenerating high streets and town centres across the UK if implemented. “The report also recommends replacing business rates for bricks and mortar businesses with a sales tax or an increase in VAT. As always, the devil is in the detail as to whether this would be effective. In any case, a replacement of business rates would need to address the fact that pubs and high street businesses are unfairly taxed, whilst online retailers are not contributing enough. As the report notes, pubs alone pay 2.8% of the total business rates bill, despite accounting for just 0.5% of total rateable turnover[1]. We welcome the call for the Government to come forward with views on how business rates could be reformed by October this year. Without doubt a full review is required. “The Chancellor Phillip Hammond’s decision to cut business rates for high street and other small businesses by one third for the next two years in the Autumn Budget was most welcome, as was the announcement of the £675 million Future High Streets Fund. These actions, combined with a number of the recommendations outlined in the Housing, Communities and Local Government Committee’s report, are a welcome step towards securing the future of the high street and the pubs that serve them.”
14 December 2018
Analysis by the British Beer & Pub Association (BBPA) suggests that almost 2,000 pubs in Wales will benefit from the Welsh Government’s decision to further invest in and extend the high street rates relief scheme in 2019-2020. The move will see each high street business receive a £2,500 cut to their rates next year. The analysis by the BBPA also found that the rates relief for pubs on the high street will be worth £4 million in total, with 500 pubs being taken out of business rates altogether. Commenting on the new high street relief scheme in Wales, Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said: “As a judge of this year’s Great British High Street’s competition, I had the pleasure to visit finalists in both Holywell and Cowbridge; both great examples of what good local partnerships can achieve, but there is so much more that we can do. The high street is an important part of any town or city. Of course, pubs are the heart of the community and an important part of the high street offer, but as an industry they face considerable cost pressures from a range of sources; particularly high beer duty, unfair business rates and VAT. “These measures by the Welsh Government to not only extend, but also increase investment in the high streets relief scheme are most welcome. Nearly 2,000 pubs in Wales will benefit from the rates relief with 500 pubs being taken out of business rates altogether. For some pubs, it could be the difference between staying open rather than closing their doors for good.” ENDS For further information, please contact: David Wilson, Director of Public Affairs: 020 7627 9151/ 07557 405 815 Nick Lawrie, Digital Communications Manager: 020 7627 9156/ 07824 359 013 Adam Beazley, Communications & Campaigns Officer: 020 7627 9155 / 07507 836 708 Notes to editors: BBPA analysis based on data from the Valuation Office Agency found: 1,917 pubs will benefit from the new high street rates relief in Wales The new high streets rates relief in Wales will be worth £4,012,674 to pubs in total 500 pubs will be taken out of business rates all together from the high street rates relief changes The British Beer & Pub Association is the leading body representing Britain’s brewers and pub companies. The Association is more than a century old and was originally founded as the Brewers’ Society in 1904. Our members account for some 90 per cent of beer brewed in Britain today, and own around 20,000 of the nation’s pubs.