The British Beer & Pub Association has today welcomed an announcement from Chancellor Sajid Javid that the Government will cut business rates for pubs. The new pubs relief will be introduced in April, with £1,000 being taken off the business rates bills of small pubs who qualify.
Business rates are calculated as a proportion of the rateable value (RV) of a pub. There is at present a 33% discount for those pubs with low RV, ie: between £12-51K. There are 18419 pubs in this 2nd category that benefit most from the 33% discount and the £1000 cut. This category is the largest of all. Those in the higher category £51-100K will benefit from this £1000 reducation but do not receive the 33% discount. Those pubs with a RV in the lowest category and those over a £100K get no percentage relief or benefit from the £1000 discount.
Commenting on the announcement, Emma McClarkin, Chief Executive of the British Beer & Pub Association, said: “Pubs are the heart of our communities, so this commitment to ease the burden of business rates is great news. “On business rates alone, pubs pay 2.8% of the business rates bill, despite accounting for just 0.5% of turnover. Reducing rates for pubs is an important step in the right direction. Such reliefs are vital until the fundamentally unfair system is overhauled. However, some large pubs, and those that are subject to state aid restrictions, will be unable to claim this relief. Once the UK leaves the EU, the Government should look at reform of the state aid rules. It is also important local authorities work to ensure that these reliefs are as simple to claim as possible. “Given that seven in ten alcoholic drinks sold in a pub are beer, the most direct way of helping all pubs is to cut beer duty.”
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