CLH News #203 August 2017

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Spirits Cleaning and Products Warewashing Hygiene and Mixers & Services Solutions

HOTELS, RESTAURANTS, PUBS & CATERING

August 2017

Issue 203

Outdoor Leisure

Breakfast Ideas

Design and Refit

Property & Professional

Pages 26 - 29

Page 30

Pages 31 - 35

Pages 36 - 38

Only 0.1% Of The Business Rates Relief Paid Out Pages 18 - 19

Pages 20 - 23

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Earlier this year, the Government set aside £300m to help small businesses hit by the rise in business rates. But so far, only a tiny fraction of that money has been given to businesses.

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Only around £197k of the government's £300m business rates relief fund has actually been allocated, despite businesses being hit with higher rates over four months ago, the Liberal Democrat party reveals following a Freedom of information request The £300m national relief fund was announced in the Spring Budget to help businesses hardest hit by the business rates revaluation, which came into force in April and has hit many small firms with punishing tax hikes. Just two local authorities have so far distributed any money - totalling £197,000 - or 0.1% of the total budget for the scheme. Of the 99 local authorities that responded to Freedom of Information requests, only two said they have so far distributed any money from the fund to local businesses, Tandridge (£156k) and Amber Valley (£41k). A quarter of councils that gave a reason for the delay blamed the need to update software to automate payments, one-third said they were still waiting for approval from their local council while one-fifth were still developing local schemes to distribute the funds. Responding to the figures, Lib Dem leader Vince cable said “The government’s business rates fiasco threatens to turn our high streets into ghost towns.The hardest hit businesses were promised rapid relief to cushion the blow, but five months on most have received nothing” “That is enough time to wreck many a small independent business, who face having to lay off staff or even go bust. This delay is completely unacceptable. The government risks crippling thousands of small businesses through its incompetence. It beggars belief that the relief fund was not properly set up before the business rates revaluation came into force, leaving local authorities with very little time to put together effective schemes. Ministers now need to get a grip and make sure struggling business owners get help before it’s too late.” BBPA Chief Executive, Brigid Simmonds said: “It is deplorable that much-needed rates relief is simply not yet reaching those small businesses most in need, as the Government intends. “We are hearing a very similar story from our members, when it comes to the pubspecific relief announced in the March Budget, which is itself worth £25 million. “Whilst the Government has taken up our calls for action, and has been putting pressure on councils, the delays at local level are inexcusable. If some councils can get their rates relief up-and-running, others should be able to do the same.” The, BBPA, which welcomed the announcement of pubs rates relief in the Budget, is calling for the £1,000 relief to be extended in future years, and to be raised fivefold, to CELEBRATING 10 YEARS OF SPROWTS

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£5,000 per year. The association is also calling for comprehensive business rates reform, as its own research shows that pubs pay 2.8 per cent of the total business rates bill, despite generating just 0.4 per cent of business turnover. Earlier this month the Campaign for Real Ale called on the Government to stop viable community pubs from being driven out of business by introducing a £5,000 annual reduction on their rocketing business rates. Reviews of business rates across England are seeing many pubs hit with a massive new financial burden, which in some cases could only be covered by them selling tens of thousands of extra pints of beer every year. The call follows new research conducted by YouGov on behalf of CAMRA which found that the public overwhelmingly supports an urgent tax break for pubs. More than two-thirds (69%) of people who expressed an opinion agree with the argument that pubs should receive tax relief as they provide safe, managed places for people to get together and drink responsibly. While the Government introduced a one-off £1,000 discount scheme for some pubs in the latest Budget, CAMRA says this action does not go far enough to help keep many afloat. Sean Hughes, landlord of The Boot pub in St Albans, which has stood on its site since the 16th century, is set to see his rates bill soar by 280% over the next five years from £14,000 a year to £52,000. He says: "Our new business rates bill means that we would have to sell an additional 22,000 pints of beer a year just to pay for the increase. I can't see how we're going to do that - it leaves us in a very difficult situation. We've already had to increase our beer prices by 10p per pint, and expect that to increase to 35p a pint. If our customers can't afford a pint at the pub they will go elsewhere, which means that our historic pub of 600 years may cease to run as a public house. We urgently need support from the Government to continue trading." James Brown who runs three pubs as part of the Brown Ales portfolio agrees, saying: "All of our pubs are multi-CAMRA award winning pubs and are seeing enormous increases to their business rates. The Chesterfield Arms has seen its rateable value rise from £27,000 to £64,000 - an increase in its final business rates bill of 140%. What is the incentive to run a successful business if the additional profits are taken away in rates? The £1,000 reduction is just a drop in the ocean when rates are increased by £20,000 - any publican will tell you that the business rates system is the most unjust cost to successfully run pubs in this country." Colin Valentine, CAMRA's National Chairman says: "Taxes now make up more than a third of the cost of a pub pint. Despite the fact that pubs currently account for 0.5% of turnover of the UK economy, they are still paying 2.8% of the business rates. This is frankly unsustainable, and it is the consumer that will ultimately pay the price whether it's when their beloved local closes down or when the price of their pint goes up. "It's clear that most of us believe that pubs need our help and recognise the vital role that they play in local communities. From celebrating a special occasion to meeting up with friends after work, pubs are an integral part of many people's social lives. Business rate relief is urgently needed in order to ensure their continued survival."

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