Brits face a 5p rise in the price of a pint because of a ‘crippling’ tax bombshell
More than 17,000 pubs across the UK face a whopping 19 per cent rise in their business rates from the beginning of April
BRITS face a 5p rise in the price of a pint because of a “crippling” tax bombshell – the Sun can reveal.
More than 17,000 pubs across the UK face a whopping 19 per cent rise in their business rates from the beginning of April.
Furious industry figures claim one boozer in Stoke has will see a huge FOUR-FOLD rise because of the radical reform of the Government’s business rate regime.
The British Beer and Pub Association adds that landlords also face a huge rise in costs this April from the higher National Living Wage and the start of the Government’s Apprenticeship levy.
BBPA Brigid Simmons said the overall effect over the next two years will be equivalent to a near 10 per cent rise in the beer duty – or a 5.3p increase in the price of a pint.
The increase comes at the same time as big supermarkets see rates FALL for some big superstores.
Ms Simmonds said: “The Government says it wants to be on the side of small business, so we need action now.
“Our pubs are at the heart of our social lives, and unless pubs get relief from huge rate rises, many more will be in very serious trouble.”
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Business rates – the commercial equivalent of the council tax- are being reset to reflect seven years of changes to property prices. This means that while some businesses are seeing a cut, others in city centres largely across the south are being hit with huge increases.
The industry wants pubs to be able to spread the cost over a five year ‘transitional’ period.
Kate Nicholls, chief exec of the pubs lobby group the ALMR, told the Sun: “Untimely and crippling increases in business rates are threatening to squeeze the life out of many pubs.
“Ours is the only sector which is facing increases from April across the country.
“It is well past the time the Government took action to ensure that businesses remain competitive and have the capacity to invest, support jobs and grow.”
UK beer duty is already the third highest in the EU and three times the EU average.
Toby Perkins, the Labour head of the cross-Parliamentary Save the Pub Group, said: “Hundreds of pubs are already struggling to survive.
“The Government has promised on numerous occasions to reduce business rate bills for pubs and retailers. If in fact what we see is an increase it will put very business pressure.
“Ministers have ripped of business for too long with the most expensive property tax in Europe. They should take urgent action to reduce this tax.”
Business rate specialist CVS say that in all 17,160 pubs will pay 19 per cent more in rates for 2017-2018 than in 2016-2017. The rateable value for the pubs has soared from £721 million in 2010 to £1 billion.
The revelation comes two weeks after claims higher business rates in April would threaten the “rural way of life” given hikes due to hit riding schools, livery yards, stud farms and vineyards.