The future of independent pubs is an uncertain one particularly when looking at the new figures emerging which estimate that business rates tax burden could increase by up to £2bn next year.

To combat these increases, pubs would need to double or in some cases triple their takings to cover the increased business rates alone. This coupled with high energy costs, rising wages and inflated cost of beer/food is a huge concern for the hospitality industry as a whole, but particularly pubs.

The hospitality industry is still trying to recover from the devastation caused by Covid-19 and the associated lockdowns, but it is a difficult and slow fight for many, with recent ONS data showing that across England and Wales, 2 pubs a day are closing their doors permanently.

The reason that such large increases in business rates liability are likely is due to the end of the current retail and leisure business rates relief and the likely increase in the business rates multiplier which is linked to CPI. Unless the Government extends the current business rates relief scheme for retail and leisure properties and/or freezes the multiplier once more, vacancy rates in our town and city centres are almost certainly set to increase.

If you are concerned about your potential business rates liability increase, please get in touch with one of our team who will review your current rateable value and advise whether a challenge to the Valuation Office Agency would be worthwhile.