Business rates discount on pubs

Meeting: 
MQT on 2017-12-14
Session date: 
December 14, 2017
Reference: 
2017/5244
Question By: 
Fiona Twycross
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

What impact has the £1,000 business rates discount on pubs had in London?

19

Answer

Answer for Business rates discount on pubs

Answer for Business rates discount on pubs

Answered By: 
The Mayor

Pubs play an important role as community hubs, and according to London & Partners going to a pub is on most London visitors' 'must-do' list. They are vital to the success of the capital's night time economy, which is worth £26.3bn and employs 700,000 people. In April, I published data showing the number of pubs in London has fallen by 25% since 2001.

The government's £1,000 business rate discount for pubs with a rateable value of up to £100,000 is subject to state aid limits for businesses with multiple properties. There are around 3,000 pubs in London eligible for this discount, but up to one third of those will not benefit from the discount due to state aid limits. While any rates relief is welcome, this discount equates to as little as 2% of the annual rates bill of eligible pubs, so is of limited help.

Business rates are one of a number of factors affecting pubs; pressures in the capital include development and complaints. I have strengthened planning protections for pubs in my draft London Plan, which also introduces the Agent of Change principle to ensure new residential developments near existing outlets are properly soundproofed, minimising noise complaints.