Somerset pubs ‘facing closure’ over business rate rise

A pub owner has said she is genuinely worried how she will keep her doors open as she anticipates a tripling in her business rates following the Autumn Budget.

Millie Coward, who owns four pubs in Somerset, said she is anticipating the bill for the Bear Inn in Wiveliscombe alone to go up by £24,000 a year.

Ms Coward added that if the government does not listen to those in the trade and rethink its plans “there won’t be a high street left”.

A spokesperson for HM Treasury said it was “protecting pubs, restaurants and cafés with the Budget’s £4.3 billion support package” and added most businesses facing a rate increase next year will see it capped at around 15 per cent.

Ms Coward said her calculations show she may have to find an extra £500 a week for The Bear pub alone.

“We just can’t do that,” she said.

She continued: “Hospitality has already been stretched to its limits in terms of taxation and with the minimum wage going up, we’ve also unfortunately hit a ceiling with what we can charge our customers.”

Rates for retail, hospitality and leisure businesses have been recalculated following independent property re-evaluations.

A retail relief scheme introduced during the Covid-19 pandemic is also being phased out.

Ms Coward said: “They [the government] haven’t done the maths on it and businesses can’t continue to trade. The only option will be a lot of closures.”

She has posted a message on social media explaining to customers that the pub will have to make some unwelcome changes to keep its doors open, but will try to avoid putting prices up generally.

Colin Barrell from the Taunton Chamber of Commerce said there have been some “phenomenal increases” in business rates, which will result in pub closures.

He said: “They’ve seen increases in national insurance, minimum wage, food costs, utilities – you name it, every cost has gone up. So those that are on the edge won’t be able to sustain that and undoubtedly will close.”

Mr Barrell said the rates on his own business, Mr Miles Tea Rooms in Taunton, are due to go up by 26 per cent.

He said the Taunton Chamber of Commerce is calling on the government to listen to the sector, rethink its plans and reform the business rates system.

A spokesperson from HM Treasury said: “We’re protecting pubs, restaurants and cafés with the Budget’s £4.3 billion support package.

“Without this support, pubs would face a 45 per cent increase in the total bills they pay next year. Because of the support we’ve put in place, we’ve got that down to just four per cent.”

The government explained that most properties looking at an increase in their rateable value will get their bill capped at 15 per cent or less next year to ease the transition to the new rates.

Further measures to help the hospital sector include relaxing licensing so more venues can offer pavement drinks or put on one-off events, capping Corporation Tax and maintaining a cut to alcohol duty.