Cash-saving opportunities still out there for beleaguered pub & hospitality sector
The British pub sector has been attacked on all fronts this year with curfews, lockdowns and customers being put off by social distancing measures when they are allowed back in to the bars.
The British Beer & Pub Association (BBPA) has already spoken out and fears that thousands of UK pubs will be forced to close for good when the next business rates bill land in April 2021. As yet, the Treasury has resisted calls to extend the businesses rates holiday to help beleaguered landlords, and that is despite the beer and pub sector employing around 900,000 people, including 600,000 workers directly in pubs.
So, every penny that stays in the till counts right now and there could still be opportunities to save significant sums, if you know the right questions to ask.
Dunlop Heywood’s rating team did exactly that on behalf of new client Positive Pub Co at the height of the lockdown. Not only did Dunlop Heywood secure the Covid-19 £25,000 business interruption grant, they were able to add further value with business rates advice and actions that saved a further £64,000 for the client.
The Positive Pub Co. took over the Regent Hotel in Leeds in 2017 and sought the advice of Dunlop Heywood in reducing their business rates liability. Utilizing the team’s knowledge of the local market and trends over time, Dunlop Heywood was able to negotiate a 40% reduction in the Rateable Value that benefitted the client by almost £90,000. Over the two pub sites that Dunlop Heywood examined, a total of £120,000 was saved.
As part of Dunlop Heywood’s investigations they analysed all factors that went into driving this trade and used market indexation to establish the Fair Maintainable Trade. After considering the premises against the wider trading location, Dunlop Heywood were able to then agree the correct banding for the property and agree to the revised valuation.
Whilst the forecast for the pub sector is uncertain at best, now is the time to ensure your business isn’t paying unnecessary business rates to compound those financial strains.
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