Summary
The owner of a pub chain in southeastern England, Phil Thorley, reports that recent changes to business rates will increase his costs by £62,000 annually. Despite government efforts to lower taxes for smaller retail, leisure, and hospitality businesses, many of these establishments face higher business rates due to increased rateable values and the end of certain discounts. These changes result in significant financial pressure for businesses like pubs.
Key Facts
- Phil Thorley runs the Thorley Taverns pub group and expects a £62,000 rise in costs due to new business rates.
- Business rates are a tax on commercial properties, calculated using the rateable value, which is the estimated annual rental cost.
- Changes in the Budget aimed to reduce taxes for some small businesses but increased the levy on high-value properties.
- Many establishments, like pubs, will lose a 40% discount from the COVID era starting in April.
- Analysis suggests an average increase of 66% in business rates for pubs.
- The government plans to save independent pubs an average of £4,800 per year.
- Business owners report financial stress despite government support packages worth £4.3 billion.
- Some business owners express concerns about further reducing their profit margins without raising prices.
