28 Sep 2024
St Albans publicans have urged MP Daisy Cooper to persuade the new Labour Chancellor to introduce measures in the Autumn Budget which ensure their future survival.
More than 40 of the city’s independent watering holes are calling for a 20-year plan for growth, training and prosperity to ensure this quintessential British institute does not disappear.
They are asking for the current discount for hospitality and retail extended for 2025/2026 as a minimum and a concurrent overhaul of the “flawed” business rate system to be actioned immediately.
Save St Albans Pubs, the campaign group established in 2016, has been fighting for business rate reform for pubs through multiple Chancellors, yet nothing has happened.
They said a measure was “sneaked in” to the last Conservative Budget which would have a profound effect on pubs if the current discount was removed.
“Our pubs were disappointed to learn that properties rated over £51,000 are to also have an increase in the multiplier from £0.49 to £0.54 in what all political parties believe is a flawed system.
“The rateable value for pubs is determined by turnover, not profit. Increased turnover from increased prices due to higher alcohol tax, food costs, staff costs etc, does not mean increased margin in profit thus making the way this is valued unfair and unaffordable.
“Around 40-50 per cent of St Albans pubs have a rateable value over £51,000.
“These are small businesses. They operate with low margins, break even at best, but, due to the rateable value, are not charged the lower ‘small business’ multiplier.”
For example, one independent pub in St Albans with a rateable value of £115K is next door to a restaurant of comparable square footage but a lower rateable value of £49,250.
Both have a similar turnover but the restaurant is rated on square footage and the pub on turnover, meaning it pays twice the amount of business rates as the restaurant.
They highlighted some of the pressures faced by the pub industry, including energy price hikes, Covid loans, soaring food costs, the largest wholesale increases on beer prices on record, alcohol tax at the highest it has ever been, and unfair tax discounts for supermarkets meaning they can sell a bottle of beer for 50p compared to £6 in a pub.
“We need to ensure the viability of our industry in 10-20 years. Short-term fixes don’t work.
“We need a 20-year plan for growth, training and prosperity to ensure this essential British institute, the unique British pub does not disappear or get ruined by corporate companies.
“As representatives for independent pubs, Save St Albans Pubs would like to be part of a taskforce to ensure that taxation on pubs is fair.”
