The Baum and The Healey qualify for 'transitional rates relief'
Date published: 17 March 2017
The Baum and The Healey, which have been hit by huge increases in rateable value, in the case of The Baum a staggering £100,000, will qualify for what is known as 'transitional rates relief' - which will reduce the amount of business rates they actually have to pay each year for a maximum of five years.
Even with the transitional relief, The Baum will still pay an increase of over 50% in 2017/18 and, with incremental increases year on year, by the end of five years the amount to be paid will have risen from the £13,170.50 currently paid to a whopping £60,497.70.
Simon Crompton, owner of the two pubs, said: "We have put an appeal in, but with ever increasing overheads, increasing minimum wage, pensions and Robinsons putting the rent up on The Healey, any increase in business rates puts the businesses under a lot of pressure, but I will do everything in my means to keep the businesses afloat for my wonderful staff and loyal customers."
The Rateable Value in 2016/17 was £26,500 (set by Government's Valuation Office) and the multiplier (set by the Government) was £0.497 giving a rates payable of £13,170.50 (26,500 x 0.497).
The Rateable Value in 2017/18 is £126,300 (set by Government's Valuation Office) and the multiplier (set by the Government) is £0.479 giving rates payable of £60,497.70 (126,300 x 0.479).
The increase in rates payable is therefore £47,326.50 (at current multiplier rates), a 459% increase
However, the Government has introduced transitional relief - over a maximum of five years - therefore those with an increase will not pay the full increase immediately (similarly those with a reduction will not get the benefit of the full reduction immediately).
For The Baum the transitional relief in 2017/18 is £40,278.62 therefore they will pay £60,497.70 less £40,278.62 = £20,219.08, which is £7,048.58 more than they paid in 2016/17, i.e. a 53.52% increase.
The extra £1,000 that eligible pubs will get, as announced in the Spring Budget, will not apply to The Baum as its rateable value is greater than the £100,000 cap that applies (Government rules).
The Rateable Value in 2016/17 was £15,750 and the multiplier was £0.484 giving a rates payable of £7,623 (15,750 x 0.484).
The Rateable Value in 2017/18 is £68,200 and multiplier is £0.479 giving rates payable of £32,667.80 (68,200 x 0.479).
The increase in rates payable is therefore £25,044.80 (at current multiplier rates), a 429% increase.
For The Healey the transitional relief in 2017/18 is £23,033.81, therefore they will pay £32,667.80 less £23,033.81 = £9,633.99, which is £2,010.99 more than they paid in 2016/17, i.e. 26.38% increase.
The extra £1,000 that eligible pubs will get, as announced in the Spring Budget, will probably apply to The Healey as its rateable value is less than the £100,000 cap that applies (Government rules) - clarification of the eligibility criteria is awaited from the Government - if eligible this would reduce the rates payable in 2017/18 to £8,633.99, i.e. a £1,010.99 increase (13.26%).