Thousands of pubs could close as they each face £25,000 bill
Thousands of pubs which have been hit hard by coronavirus could not cover the cost of such a large bill
by Neil ShawThousands of pubs across the UK could be forced to call time as they face a looming £800 million business rates bill, a trade association has said.
The British Beer & Pub Association (BBPA) believes the bill, which could be due in March and amount to an average cost of £25,000 per rate-paying pub, could be “the last straw for many” and force them to close for good.
UK pubs will immediately face a bill if pub sector specific relief on business rates ends as planned in March 2021, the BBPA says.
Thousands of pubs which have been hit hard by coronavirus could not cover the cost of such a large bill, according to the BBPA, which is calling on the Government to extend its pub sector relief on business rates for at least another year.
BBPA chief executive Emma McClarkin said: “Given that all these pubs made it through the lockdown – over 15 weeks without being able to open their doors – and have remained viable businesses despite social distancing and significantly lower footfall, it would be devastating for them to fall at the final hurdle in the post-lockdown recovery.
“It would mean much of the Government’s vital support for the sector through lockdown would have been wasted.”
The UK’s beer and pub sector employs a total of 900,000 people, including 600,000 workers who are directly employed in pubs.
A Treasury spokesman said: “We have stood by pubs and the communities they serve throughout the pandemic, providing targeted support for the sector including business rates holidays and cash grants of up to £25,000.
“The Eat Out to Help Out initiative also supported two million jobs in the hospitality sector, and the industry is also benefiting from a reduced rate of VAT until January 2021.
“The coronavirus job retention scheme will have been open for eight months from start to finish, with the Government helping to pay the wages of over 9.6 million jobs so far.
“And support doesn’t end in October, with the furlough bonus paying £1,000 per employee for those brought back to work and kept in employment into 2021.”