For the first time in seven years, the government has re-evaluated the business rates payable, leaving London boroughs paying an extra £1.907 billion in tax over the next five years.
According to the research, conducted by business rates specialists CVS, the revised levy will leave Britain's pubs facing an extra bill of £420m over the same period.
CVS said the combined rateable value of the 44,000 pubs in England and Wales had risen from £1.43 billion at the last assessment in 2010 to £1.64bn, implying an extra £84.2m a year in rates over the next five years from April.
Commenting on the findings, Mark Rigby, chief executive of CVS, said: “London pubs are set for a business rates shock from next April and I won’t be surprised if we see pints getting even more expensive.
“On one hand, these increases are a sign that the capital’s pubs have been in rude health over the past seven years. However, such a drastic rise in business rates could leave pub operators squeezed and — in severe cases — at greater risk of closure or redevelopment.
“The worst-affected pubs will see six-figure increases in their next bill and there are some clear hotspots. Popular pubs on the Thames riverbank will be hit hard, as will big chains in central locations and near major train stations.”
At Beavis Morgan, we have extensive experience of working with clients in the hospitality sector and our professionals are acknowledged experts in issues affecting pubs, bars and restaurants.
Contact Matthew Burge or your usual Beavis Morgan Partner for further information about how we can assist you and your hospitality business.