Pubs are set to save around £39m annually as a result of the changes to business rates in this week’s Budget, says the British Beer & Pub Association (BBPA).
New research from the trade body has found that 81% of pubs will benefit from the small business multiplier, small business rent relief or both from April 2017. Businesses are set to save around £1,100 per year on average, it says.
The threshold at which the small business multiplier is set has increased from £18,000 (£25,500 in London) to £51,000. The small business rate relief threshold has been raised to give 100% relief to all properties with an RV of £12,000 or below, up from £6,000 previously. Tapered relief will be available to businesses with a rateable value of £12,000 to £15,000.
Some 40% of pubs – around 16,500 businesses – will pay no business rates at all. This is quite a high increase on the current 3,700 premises paying no rates. The changes will particularly benefit traditional community pubs according to the BBPA.
Chief executive Brigid Simmonds said: 'These changes are a real boost, especially for much-loved community locals. They reflect much of what BBPA called for in its response to the recent Government review, and show that the Government is listening to concerns, when it comes to both the big burden of the current rates regime, and also the vital role that pubs play in local communities.'