Publicans have a reason to celebrate with the Government’s announcement of a £1,000 business rates discount for pubs.
The relief announced on 27 January 2020 will be available to public houses with a rateable value of less than £100,000 and it will apply for one year from April 2020. Central government will reimburse local authorities that adopt this scheme.
The cut is on top of previously announced plans to slash the bills of small shops by 50 per cent.
Savings Of £13,500
As many as 18,000 pubs are expected to benefit from the discount. The relief will come on top of an extended retail discount, which smaller pubs are also eligible for. Those eligible for both reliefs will get up to £13,500 off their annual bills.
The £13,500 discount is based on a pub with a rateable value of £50,000, generating an annual rates bill of around £25,000. Applying the 50 per cent retail discount reduces the bill by £12,500. The pub would then receive the additional £1,000 pubs relief.
Changes From April
From April this year:
- small shops and cafes will see their bills halved as the retail discount, currently a third off, is extended to 50 per cent;
- music venues and cinemas will become eligible for the retail discount;
- a £1,500 discount for local newspapers office space will be extended for a further five years.
The pubs relief will apply to pubs with a rateable value below £100,000 subject to eligibility.
Pubs with a rateable value of below £51,000 already get a one-third reduction in their rates bill through the retail discount. The £1,000 discount is in addition and will apply after the retail discount.
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