Mike Clist CEO of the British Institute of Innkeeping (BII) Comments on Today’s Budget
The Chancellor today made some positive moves to help businesses and we welcome short-term measures to reduce the burden on pubs being caused by the 2017 rating re-valuation process. This measure will give a discount of £1,000 for every pub with a rateable value under £100,000 in the coming fiscal year. It also helps pubs which were due to lose small business rate relief by capping any increase to £50 per month over the next 12 months. We wait with interest to see how this help will be carried forward in to future years.
We are also delighted that he today announced the Government’s intention to review the business rating system of this country. Pubs pay 2.8% of the total business rate bill but we only equate in turnover terms to 0.5%. The BII together with other industry bodies will continue to lobby on behalf of our members to make sure that any reform reflects the importance of pubs to the economy and rates are fair in comparison to other businesses, especially online retailers. The inflation rise in duty on beer, wines and spirits will almost certainly mean a price rise across the bar.