How Rising Business Rates are set to Threaten Pubs and Other Industries
The unique British pub industry has faced a number of setbacks over the past couple of decades, and now a change in business rates is set to become the latest threat. According to The Guardian, a campaign group has said that the new business rates revaluation introduced this year has the potential to devastate the sector.
The changes in business rates will lead to a rise in the tax which many businesses have to pay, but campaigners say they are going to hit pubs the hardest. Many local pubs face hikes of thousands of pounds each month, and with many establishments already struggling to make a profit it could lead to closures up and down the UK.
In April 2017, the latest rateable values were published by the government, which takes into account the value of property in the area where a business is based. The controversial changes mean that some businesses will pay a lot more than they do at the moment, and many claim they simply won’t be able to find the extra income to pay the business rate tax.
Independent pubs and retailers will be hit hardest – the owner of a pub in Rochdale, Simon Crompton, claims its rateable value has jumped from £26,000 to £126,000. The Chief Executive of the British Retail Consortium said that the changes would be the last straw for many shops, leading to empty shop units and fading high streets.
How Gerald Eve can Deliver Savings
Changes in tax can be worrying for business owners, especially when there is a high possibility you will be eligible to pay a lot more than you have in the past. The new rates affect individual businesses differently, so it’s important to speak to a business rates advisor to find out what your bill is likely to be. From there, the advisor can then offer professional advice to minimise the impact of the rateable values which could be slicing into profits.
A business rates specialist at Gerald Eve can help you achieve cost savings in a number of ways. Your business might be eligible for relief or you may be able to appeal the rate determined by the business rate valuation. Our experts have helped brands such as Costa Coffee and Marriott to mitigate costs relating to business rates, and we are the chosen advisors for 25% of the FTSE 100.
If business rates are becoming a cause for concern, speak to one of our specialists today. Gerald Eve has offices nationwide and international alliances across the globe.