A UK pub chain boss has warned of business rates killing off businesses on the high street. Chris Jowsey, chief executive of Admiral Taverns, described the difficulties being faced by high street businesses, as business rates “penalise” them and favour online retailers. Admiral Taverns owns 1,365 pubs in the UK and aims to make these venues the “heart” of the communities they serve.
In an interview with City AM, he said: “Every party over the last 20 years has promised to reform business rates, and none of them has done it.
“This Government has said they are going to do it over the next couple of years, but they need to deliver on that promise. If they continue to tax business rates in the way that they do, then they won’t just kill off pubs, they’ll kill off the high street as well.”
He pointed out that current business rates are tied to property value, which he says gives online retailers an unfair advantage. “If you do that, you’re just penalising bricks and mortar, and those kinds of businesses on the high street will suffer accordingly,” he argued.
“The cost base is growing faster than revenue, so it’s squeezing the ability to make a profit out of the trade. That’s the fundamental challenge.”
Despite this, Admiral Taverns is enjoying significant profits at the moment. The group saw revenue rise by 8% to £210.4m in the last financial year following a £13.5m investment.
A Treasury spokesperson said: “We’re backing the high street with a £4.3bn Budget package to cap big bill hikes – stopping bills rising for over half of business properties.
“Our Plan for Small Business will help SMEs access the tools and support they need to unleash their potential, and later this year we’ll publish a new High Streets Strategy that will build on the £5bn Pride in Place programme to renew our neighbourhoods and high streets.”
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