High Streets Initiative · 5 February 2018

Two pubs demolished or converted every day since business rates revaluation

The number of operating pubs in Britain has dropped to 42, 450
Around two pubs have been either demolished or converted since the latest business rates regime came into effect in April 2017, new findings have shown.

Following the government’s first revaluation of all business properties in seven years, Britain’s pub landlords saw rateable values of their premises increase by 14.24 per cent to 1.6bn last year.

The Valuation Office Agency (VOA) calculates the rateable value of pubs by using a “fair measureable trade” principle to predict how much income a business is likely to generate, taking into account three factors:

  • The type of pub or licensed premises
  • The area it’s in
  • The services it offers, for example food, gaming or sports screenings
A percentage is then applied, which is agreed with the British Beer and Pub Association.

Ten months into the new business rates regime, research from ratings agency Altus Group has revealed the increased tax burden coincided with a loss of 616 pubs from UK towns and cities. Premises were either sold up and demolished or converted into homes, offices or other businesses.

However, the pace at which pubs have been closing since April 2017 has eased when compared to the previous regime. In the seven years from April 2010, high streets saw a net loss of four pubs each day, with 11, 608 converted into other businesses.

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Pubs

 

Every week one business owner faces a 90-day prison sentence for unpaid business rates

Local authorities have confirmed the pursuit of the toughest legal penalties possible for non-payment of business rates.

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Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

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