'Taxed into oblivion'

Pubs fear changes in business rates could drive them to the wall

- Tom Knowles

Emma Harrison has begun to wonder how her business can survive. The managing director of the Three Hills pub in Bartlow, Cambridgeshire, is struggling to see how she will make a profit in light of her rising tax bill. "I'm really terrified about this coming year," Harrison said. "We're a well-run pub, we've won lots of awards, but this is going to be really hard.

She is not alone. Pubs, hotels, nightclubs, live music venues and other businesses in the hospitality sector are reeling from changes to business rates announced in the budget last month.

From April next year, almost all commercial businesses will see their rateable value - which is used to determine the amount of tax paid in business rates - recalculated.

For pubs and some other hospitality sectors, the rise is unexpectedly large, even with the three-year tapered relief announced in the budget.

Rob Hattersley, the managing director of Longbow Venues, a hospitality business in the Peak District, said one of his pubs, the George, was facing an increase in its rateable value from £49,000 to £205,000. This means its rates bill will rise from £24,451 this year to £88,150 by 2029.

"We cannot just pass these costs on to guests," Hattersley said. "People are already watching their spending, and we are doing everything we can to keep prices fair and accessible. Businesses like ours are being squeezed from every direction."