Mine’s a pint: how the revaluation is affecting the pub industry
Just a quick musing from me today after seeing an article that had a very novel way of measuring the impact of business rates on one industry.
It centres on the effect of the business rates revaluation on the pub sector with an industry expert working out how many extra pints would have to be sold to cover the additional payments forecast.
Apparently, the country will have to really get its act together on the drinking front next April with a tax increase for pubs across England and Wales of an extra £421m – or the equivalent of selling an extra 121 million pints.
It could also translate into a price hike on the pint – as much as 30p. But before we are start to cry in our over-priced beer the figures are all very much estimates and won’t take into account the inevitable appeals that are being and will be lodged.
The changes in the revaluation overall have hit London the hardest and, as such, the pub trade in the capital has not been shielded any more than the retailers or other sectors that have been much more vocal in their opposition to the changes.
As for the Government’s position, they have created a little win-win in this scenario: business rate hikes swell their coffers from April onwards, and landlords either put up their prices or sell more pints to make up the difference, bringing in extra alcohol duty revenues at the same time – doubles all round!
The retail and hospitality sectors are mobilising the troops with dire warnings that thousands of business are at risk if the rates holiday isn’t extended beyond April 2021.
The pandemic has led to more than 50,000 extra appeals being lodged against business rates by Scottish firms alone.
Calls are getting louder in the retail sector for the government to take urgent measures to soften the blow of business rates. High profile owner of Frasers Group Mike...