This month’s government announcement that rates bills will continue to be based on 2008 property values until 2017 will create problems for many businesses, including pubs, restaurants, coffee shops and others in the hospitality business struggling in current tough economic conditions.
According to CVS, the UK’s leading business rates specialist which represents more than 25,000 businesses across the UK, the decision is a ‘toxic cocktail’ that threatens to drive more businesses to the wall.
Mark Rigby, Chief Executive of CVS said:
“Economic conditions are extremely tough out there. Extending the current charging regime until 2017 – nine years after rateable values were last measured – is unjustifiable and is simply heaping pain upon pain for businesses crying out for some respite from government.
“Low consumer spending, high property rents and rising overheads like energy bills and staff costs are making trading conditions hard enough on the High Street and right across business. Today’s announcement simply creates a toxic cocktail which is going to be very hard for thousands of businesses to swallow and survive.”
The BBPA view
Commenting on the delay, Brigid Simmonds, Chief Executive of the British Beer & Pub Association, said:
“This will come as bad news for many pubs, which were relying on the revaluation to reduce business rates because their turnover had dropped. The revaluation is an opportunity to get a fairer rates bill, so any delay is very unwelcome.
“If we are going to see more time passing between rate revaluations, then it makes the reintroduction of Section 20c [of the Local Government Finance Act] all the more important. This would allow pubs to appeal annually, where their levels of trade have since dropped, offering an immediate rebate.
For more information on CVS UK click here
For more information on BBPA click here