The new arrangements for business rates were duly announced and the Government attracted a great deal of abuse as a result. Some publicans even barred all Labour MPs from their pubs. Up went the usual cry: \u2018the Government isn\u2019t listening\u2019 and it was quite remarkable how the campaign against the changes gathered momentum. The reform of business rates has long been promised and the Government deserves some credit for actually making the change; it is just disappointing that they didn\u2019t spot that it was flawed. When they were eventually persuaded of this, they announced that they would review the situation, even at the risk of being accused of making a U-turn. Such is political life. As we go to print, the changes have yet to be announced. Hopefully I will be able to report them in the next edition. The announcement has, at least, avoided a proposed \u2018day of action\u2019 on 30 January with publicans marching on Westminster.<\/p>\n\n\n\n
Readers may recall that, since COVID, the hospitality industry had received relief (a discount) on its business rates to help them through the crisis. Originally this was 75%; it was reduced to 40% from 1 April 2024 and comes to an end on 31 March this year. Full business rates under the old scheme would have then become payable had the new arrangements not been introduced. The multiplier, the number used to calculate the actual amount payable, has been reduced and so, consequently, the rates payable under the new system would, in most cases, be less than under the old system at full value. That is the problem. Publicans are not comparing what they have to pay now with what they might have had to pay under the old system. They are comparing it to the actual amount that they paid for 2025\/2026, which was 60% of the old system amount.<\/p>\n\n\n\n
At the same time as the budget, however, there was a revaluation that has seen the rateable value (RV) of most pubs increase, making some rural pubs liable for business rates for the first time. This was a scheduled event and not directly linked to the new system. The RV of pubs is calculated differently from that for other businesses, so that comparisons with changes in the RV of other premises are not valid. I will expand on this next time.<\/p>\n\n\n\n
As regards other measures, alcohol duty will increase on 1 February by inflation (3.66% Retail Price Index), which will, of course, add to pub running costs. No change to VAT was included. Employers\u2019 National Insurance also remains unchanged while there may yet be some action on energy bills. The latter points, of course, affect most businesses.<\/p>\n\n\n\n
The following table shows the rateable values of a range of current or former Branch Pubs of the Year. Note that micropubs are not included as most do not hit the \u00a312,000 Rateable Value before business rates are paid.<\/p>\n\n\n\n
| Pub<\/th> | RV 2017<\/th> | RV 2023<\/th> | RV 2026<\/th> | Pub Co<\/th> | Notes<\/th>\n<\/tr>\n<\/thead>\n |
|---|---|---|---|---|---|
| Black Dog, Brentford<\/td> | 12000<\/td> | 39000<\/td> | 84000<\/td> | Independent<\/td> | <\/td>\n<\/tr>\n |
| Bohemia, North Finchley<\/td> | 120000<\/td> | 110500<\/td> | 125500<\/td> | London Brewing<\/td> | <\/td>\n<\/tr>\n |
| Cask Pub & Kitchen, Pimlico<\/td> | 30000<\/td> | 85000<\/td> | 90000<\/td> | Craft Beer Co<\/td> | <\/td>\n<\/tr>\n |
| Hope, Carshalton<\/td> | 24000<\/td> | 65900<\/td> | 69000<\/td> | Independent<\/td> | <\/td>\n<\/tr>\n |
| Magdala Tavern, Hampstead<\/td> | 46900<\/td> | 46000<\/td> | 68000<\/td> | Morgan Pubs<\/td> | <\/td>\n<\/tr>\n |
| Masons Arms, Twickenham<\/td> | 26300<\/td> | 17000<\/td> | 25000<\/td> | Independent<\/td> | <\/td>\n<\/tr>\n |
| North Star, Leytonstone<\/td> | 23900<\/td> | 26500<\/td> | 36000<\/td> | Independent<\/td> | <\/td>\n<\/tr>\n |
| Park Tavern, Kingston<\/td> | 26900<\/td> | 14500<\/td> | 21500<\/td> | Independent<\/td> | <\/td>\n<\/tr>\n |
| Red Lion & Pineapple, Acton<\/td> | 127000<\/td> | 126000<\/td> | 59000<\/td> | Wetherspoon<\/td> | *2023 subequently reduced to 59,000<\/td>\n<\/tr>\n |
| Red Lion, Charring Cross<\/td> | 134000<\/td> | 160000<\/td> | 173000<\/td> | Fullers<\/td> | <\/td>\n<\/tr>\n |
| Robin Hood & Little John, Bexleyheath<\/td> | 28750<\/td> | 17500<\/td> | 20000<\/td> | Independent<\/td> | <\/td>\n<\/tr>\n |
| Royal Oak, Borough<\/td> | 43800<\/td> | 20000<\/td> | 28500<\/td> | Harveys<\/td> | <\/td>\n<\/tr>\n |
| Sir Michael Balcon, Ealing<\/td> | 125000<\/td> | 117000<\/td> | 63000<\/td> | Wetherspoon<\/td> | *2023 subequently reduced to 55,000<\/td>\n<\/tr>\n |
| Southampton Arms, Kentish Town<\/td> | 50000<\/td> | 43000<\/td> | 62500<\/td> | Independent<\/td> | <\/td>\n<\/tr>\n |
| Star & Garter, Bromley<\/td> | 17500<\/td> | 17300<\/td> | 48500<\/td> | Independent<\/td> | <\/td>\n<\/tr>\n |
| Sultan, South Wimbledon<\/td> | 31600<\/td> | 21700<\/td> | 29000<\/td> | Hopback<\/td> | <\/td>\n<\/tr>\n |
| Trafalgar, South Wimbledon<\/td> | 9750<\/td> | 6500<\/td> | 8750<\/td> | Independent<\/td> | <\/td>\n<\/tr>\n |
| Victoria, Paddington<\/td> | 162000<\/td> | 160000<\/td> | 236000<\/td> | Fullers<\/td> | <\/td>\n<\/tr>\n |
| Ye Olde Mitre, Barnet<\/td> | 22000<\/td> | 31800<\/td> | 77500<\/td> | Greene King<\/td> | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":" The new arrangements for business rates were duly announced and the Government attracted a great deal of abuse as a result. Some publicans even barred all Labour MPs from their… <\/p>\n","protected":false},"author":2,"featured_media":6081,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-6051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/6051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/comments?post=6051"}],"version-history":[{"count":5,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/6051\/revisions"}],"predecessor-version":[{"id":6058,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/6051\/revisions\/6058"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/media\/6081"}],"wp:attachment":[{"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/media?parent=6051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/categories?post=6051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/tags?post=6051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |