Shrewsbury CAMRA joins calls for pub business rates review

Shrewsbury and West Shropshire CAMRA has added its support to the calls after it emerged dozens of pubs in the area faced large rises in the amount of business rates they would have to pay.

One landlord, Oliver Parry at The Salopian in Shrewsbury, warned a quadrupling of his business rates would lead to the business going bust.

Nationally, the Campaign for Real Ale (CAMRA) is calling for a reduction of up to £5,000 from pubs’ business rates and an improved transitional relief model for pubs facing high increases in rates ahead of the Spring Budget.

CAMRA says the problem is with the way pub rates are calculated. Most businesses pay rates based on the type, size and location of their buildings.

For pubs there is an extra factor based on the amount of money the Government believe they should be able to take over the bar. The campaign is now calling for urgent action in this year’s Budget to assist affected pubs.

Today, Norrie Porter, public affairs officer at Shrewsbury and West Shropshire CAMRA, said the rises were "unfair" on pubs.

He said: “Using turnover as a basis for rates is grossly unfair, particularly when estimated by the Valuation Office.

“The estimates produced are unrealistic, don’t take into account how small the margins are in pubs and, in effect, penalise success.

“At CAMRA we believe that the business rates rises are also unfair on pubs, because unlike other businesses, pubs are valued on their location and the Valuation Office's view of how much turnover a notional "competent landlord" should be able to attract over the bar.

“As this appears to be in many cases thousands of pounds more, the implication is that current landlords are incompetent, which is plainly not true.

“Pub landlords work long hours on small margins, employ huge numbers of staff, often younger and less skilled people, and provide services not only to locals but to visitors.

“Taking higher rates from pubs which can't raise prices because of competition from larger chain houses, and can't increase wet sales because the market is saturated and their pubs are already full every night means that the extra money will come from staffing or from the licensee's pocket.

“Either of those options could make the pub non-viable, leading to closure. Closure, of course will lead to reduced choice for consumers and potentially higher prices.”

Mr Porter also said that pub rates are rising while those of out of town supermarkets are being reduced.

“Widening the tax gap between pub and off-sales means more people will end up drinking at home, where they tend to drink more.

“Drinking in pubs has been shown to be better for mental health and for community cohesion, and, I would argue, much more fun.”