Star Pubs & Bars has appointed Humberts to help its lessees complete the Valuation Office Agency’s Forms of Return which are currently being mailed out to pubs and which will form the basis for setting their rates from 2017.
Valuations to be set accurately
With rates having increased over recent years to become one of the biggest overheads for pubs at 6 to 7% of turnover and in many cases higher than rents, Star Pubs & Bars believes it is vital to employ rating experts at the outset to ensure that rates valuations are set accurately from the start and so reduce the need for appeals.
The company is writing to all its lessees to draw attention to the forms which have to be completed and returned to the Valuation Office promptly in order to avoid a fine. It is urging lessees to send their forms to Humberts for checking prior to their submission.
Appeals take over 2 years
Research by Star Pubs & Bars has revealed that the average time taken to settle appeals for its pubs for the 2010 valuations was 2 years 2 months with some lessees waiting 4 years for a settlement. 40% of its appeals were successful generating average annual savings of £2,500, whilst one sixth of lessees had their bills cut by over £10,000 a year.
Says Chris Jowsey, Star Pubs & Bars trading director, “Given the length of time the appeals took and the amount of money lessees had tied up with local councils during that period, we are taking a very proactive approach and employing Humberts early on in the process rather than waiting until the new Ratings List comes out in 2017. We hope this will reduce the number of appeals we need to make, providing better cash flow and more certainty for our lessees.”
Early check on rates re-assessments
The company will also be employing Humberts to check its lessees’ rates re-assessments at the earliest opportunity in 2017. Comments Jowsey, “We were one of the first to review our pubs’ rating assessments in 2010 and found it paid off; only 1% of our original appeals were unresolved in 2014 against 25% for some other pub operators.
“Business rates are a heavy burden for licensees and need reform if they are to support the Great British pub. We welcome the Government’s announcement of a review and will play our part in ensuring that our lessees’ views are represented. Until then our approach is to give our lessees the best support we can so they don’t pay a penny more than they should. Using rating experts, providing detailed, accurate and relevant information, bi-annually reviewing rates and taking early action about concerns are key and we will continue to take this vigilant approach on our lessees’ behalf.”
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