A publican in south-east England has issued a stark warning that his business faces an annual increase of £62,000 due to upcoming changes to business rates. Phil Thorley, who runs Thorley Taverns, says the financial blow could sound 'the death knell to the British pub' for many venues already under pressure.
Rateable Values Head 'North' for Hospitality
Mr Thorley revealed that 17 out of his 18 venues will be hit with higher bills when the new measures take effect. He told BBC Radio 4's Today programme that rateable values at most of his sites had 'gone north', resulting in a 27 per cent rise in the total rates paid by his family business.
This sentiment is echoed across the sector. Analysis by tax consultancy Ryan suggests the hospitality industry is facing the sharpest increases. Their data indicates typical small retailers will see bills rise by 42 per cent, restaurants by 45 per cent, and pubs by a staggering 66 per cent on average.
'Smoke and Mirrors' and Squeezed Margins
Other business owners have voiced similar concerns. Elaine Wrigley, owner of the Atlas Bar in Manchester, described the government's statements as 'smoke and mirrors'. Her venue's rateable value has jumped from £69,000 to £97,000.
'She may well have said it's the lowest rate and the best support but it's from the highest base,' Ms Wrigley stated. Her bar has raised prices four times in a year but fears further increases will deter customers. 'We're at a point now where we feel like we can't put any more on to our customers, so subsequently our margins are being reduced and being squeezed,' she explained.
Industry Warns of Widespread Closures
Sacha Lord, chairman of the Night Time Industries Association, labelled the business rates changes a 'stealth tax' on high street firms. He issued a grim prediction: 'Once this kicks in in April, we are expecting to see more closures than ever before, including during the pandemic.'
For Phil Thorley, the combination of rising business rates and impending increases to the minimum wage creates a perfect storm. He warned it would lead to 'less employment, less investment, less training in the people that we've got, and less jobs for young people' within his 'small little family company'.
In response, a Labour Party Government spokesperson highlighted other measures, stating: 'This comes on top of cutting the cost of licensing to help more offer pavement drinks and al fresco dining, keeping our cut to alcohol duty on draught pints and capping corporation tax.' However, for many publicans, the immediate threat from soaring rates remains the most pressing concern.
