95pc of Shropshire pubs eligible for rates relief

A study by business rent and rates specialist CVS suggests that 95 per cent of pubs in the county will qualify for the combined £25 million business rates discount and £300 million hardship fund.

Detailed analysis by the company suggests that there are 444 pubs in Shropshire liable for business rates, of which 146 have a Rateable Value below £12,000.

This means that in two weeks, under new measures with the doubling of the small business rates relief threshold, 33 per cent of all local pubs will no longer pay any business rates at all over the next five years.

Of the remaining 298 pubs, CVS said 283 have a rateable value less than £100,000 and are eligible to the new £1,000 pub discount announced at the Budget, subject to state aid rules, which means 95 per cent of all pubs that will face a rates bill in April.

Just 15 of the biggest pubs in Shropshire, which have a rateable value over £100,000, won't receive the discount, but any business experiencing big hikes in business rates as a result of the revaluation will be able to access the £300million five-year hardship fighting fund.

This also applies to those pubs that are set to receive the pub discount.

However, a number of pubs in Shropshire have described the Chancellor's move as a "sticking plaster", and some have seen rates increased to such an extent that the £1,000 relief will make little difference to the overall effect of the revaluation.

Mark Rigby, chief executive of CVS, met with the Secretary of State ahead of the Budget to press for financial help for pubs.

He said: "Rating for pubs is notoriously complex. Unlike other rates assessments which are based on rents, valuations for pubs are based on an assessment of ‘fair maintainable trade’, which is calculated using information on turnover, services offered, the local area and other factors.

“Businesses should always make sure that they are paying fair and accurate rates liabilities, and if not, then they should seek to challenge their new property assessment by way of lodging an appeal with a professional agent.”

Over one million businesses in England challenged their last property assessment with almost 1 in 3 receiving a rebate through a successful appeal.