Spiralling business rates close four pubs every day

Around four pubs close their doors every day in the face of rising business rates, a new study has revealed.

The research, conducted by property surveyors CVS, shows that a fifth of pubs closed between April 2010 and December 2016, 11,443 in total.

It says that the remaining 43,231 pubs – the lowest ever recorded in England and Wales – now face a £421 million hike in business rates over the next five years.

A Government revaluation of business rates happens approximately once every five years to better reflect property costs.

But soaring house prices in and around major cities will make some rates untenable for small businesses.

Mark Rigby, CVS chief executive, suggested that the increases are unfair as they are based on obsolete valuations.

“There is no doubt about it: anything that keeps operating costs high and not reflective of current circumstances is going to be a factor in terms of the long-term health of the business,” he said.

Last week, a separate study from the Association for Licensed Multiple Retailers (ALMR) found that the increase will add a £300 to £500 million tax burden for pubs and restaurants.

ALMR suggested that just under half of all establishments will see an increase in rates, with 51 per cent more premises falling into the new £100,000 higher band – meaning a 45 per cent increase in bills in the first year.

Posted in Business.