Written by: Craig Newton on Monday 07/03/2016
Landlords, licensees and owners in the pubs, bars and hotels sector could be hit with increased business rates bills payable from April 2017, adding further financial strain to the hospitality sector.
The new 2017 draft figures, that are due to be announced on the 1st October 2016, could mean higher business rates across the sector despite a widespread perception among many pub, bar and hotel owners that the industry has suffered enough in the face of an antiquated rating system.
It is possible that some businesses could see their rateable value (RV) rise by up to 100% and with thousands of new draft figures hitting the doormats of landlords and licensees across the country later this year, it is expected to be met with widespread disdain and a flurry of business rates appeals.
The general consensus is that business rates bear no relation to the current economic climate. With the last RVs valued as at April 2008 prior to the economic downturn, many hospitality sector businesses - such as pubs, bars, clubs, hotels and restaurants - have been paying high business rates during a period where the economy has largely been in decline.
Craig Newton, Associate Director of Rating at Eddisons, believes a business rates increase will trigger a groundswell of appeals from landlords, licensees and owners in the hospitality sector.
"I think in many ways, any increase announced in the draft figures on the 1st October will be the straw that broke the camel's back for pub, bar and hotel owners who have seen their industry beleaguered for several years.
"Whether you're a landlord, licensee or owner, it's important that you're aware of your right to appeal against your rateable value, particularly when you receive your new 2017 draft rateable value.
"Eddisons provide specialist rating advice in this sector so if you wish to query your business rates, we will act on your behalf throughout the appeal process on a no-win no-fee basis."
For more information on business rates and grounds for appeal, please contact our rating team that consists of RICS-accredited chartered surveyors. You can use the contact form below or dial 07766 246 794.
Whether you're a landlord, licensee or owner, it's important that you're aware of your right to appeal against your rateable value, particularly when you receive your new 2017 draft rateable value.