The CEO of the Valuation Office Agency has told MPs that more than 5,000 pubs will see their rateable value double this year, leading to a “staggering” increase in business rates, while acknowledging the Treasury was aware of the implications before the November Budget.
The Valuation Office Agency has informed MPs that more than 5,000 UK pubs will see their rateable value rise by 100 percent this year, with an average pub paying £1,400 more each year, and £12,900 over three years.
VOA chief executive Jonathan Russell also told the Treasury Select Committee on 12 January that most pubs saw a 32 percent increase in their rateable value, with the sector now facing a “staggering” increase in tax.
“Russell suggested ministers were aware before the Budget that rateable values were set to rise, undermining claims by Business Secretary Peter Kyle that the Treasury ‘didn’t have access’ to crucial information,” reported This is Money.
“Asked by Tory MP Dame Harriet Baldwin if he had flagged this ‘huge increase by historic standards’ to the Treasury before the Budget, he said: ‘We make it very clear there are changes in rateable value because of the work we’re doing.’”
Responding to the statement, UKHospitality chair Kate Nicholls said: “This is yet another example of just how hard hospitality businesses are hit by significant increases to rateable values, which have driven staggering business rates rises.”
“The Treasury was warned, by UK Hospitality, to expect significant increases to rateable values, due to the previous revaluation being based on valuations during Covid. We laid out, in no uncertain terms, that the maximum 20p discount to the multiplier was absolutely necessary to offset these rises in rateable values.”
“Sadly, our warning was not heeded, and now the level of business rates increase over three years will be simply unsustainable for many businesses to absorb.”
Rates raid
Kate Nicholls said… “our warning was not heeded, and now the level of business rates increase over three years will be simply unsustainable for many businesses to absorb…
