Boss ‘feels like giving up’ as pubs miss out on cash
The manager of three Bath pubs claims the “unfair” process of handing out coronavirus support grants has left him feeling that the “deck is stacked against” his businesses.
Joe Cussens is the managing director of The Bath Pub Company, set up in 2012, which operates The Hare and Hounds in Lansdown, Marlborough Tavern and The Locksbrook Inn.
He says none of the three pubs has been given the £25,000 cash grants that other venues in Bath have received.
The grants have been given to businesses depending on what their rateable value is and how much they pay in business rates.
Because Mr Cussen’s pubs are over the threshold of £51,000 in rateable value they do not qualify for the Retail, Hospitality and Leisure Grant Fund cash, which he said was “heartbreaking”.
Mr Cussens told the Bath Chronicle that the rates have been incorrectly calculated for his businesses and that he started the process of trying to get them re-evaluated and lowered in January 2020 but it can take over a year.
Business rates are calculated by the Valuation Office Agency (VOA) from central government and collected by local government.
A spokesman for the VOA said they understood how “challenging” this time had been and that they were working hard to support people.
The spokesman continued: “The VOA uses a wide range of property information, including rental and other evidence such as location and physical attributes, to compare values across similar types of properties in order to set the rateable value.
“If a ratepayer thinks the details we hold about their property are incorrect, they can see how their valuation has been calculated and update their facts by using our check and challenge service.”
Mr Cussens said the only saving grace was that his pubs along with others in the hospitality sector were now in a business rates holiday for 12 months as introduced by the Government.
He said: “I’ve had to do so much work to show people how unfair the system is, and research. All while I’m trying to carry on.
“I sometimes feel like giving up, it really does feel as if the deck is stacked against you.
“We’re being taxed within an inch of our lives. I’m happy to pay my fair share but this is way more than my fair share.
“I’ve been told that even if our business rate is re-evaluated and lowered we won’t get the cash grants which we should have got.”
He added: “The scale of the discrepancies are hard to comprehend and hard to stomach.”
Not receiving the cash grants has meant he has been forced to borrow more money, adding to the future uncertainty, he said.
He added that many people do not understand the huge costs of running pubs and that there isn’t always a lot of profit left at the end. Mr Cussens said that he has had a lot of support from locals, including his MP Wera Hobhouse.
He said: “I spoke to Wera and she has written to the chancellor for me. Everyone I tell about this is so shocked.”
Ms Hobhouse said: “Joe came to me in late June looking for support with his campaign on unfair distribution of business rates.
“Following our meeting I wrote to the chancellor on Joe’s behalf asking for the Government to provide both clarity – and support – for people in Joe’s position.
“I have yet to receive a response from the Chancellor. I am pleased that the Government has since then decided to give businesses in the hospitality sector a business rates holiday for this financial year. I sincerely hope that this support is accessible to Joe.
“I will continue to raise the issue of unequal distribution of business rates with central Government.”
Mr Cussens also went on to explain that his company used to own The Chequers in Bath but did not seek to renew the lease when it ended in April, partly because the pub had been “crippled” by its business rates.
He added that he was hoping the good outdoor trade levels his pubs have been seeing as lockdown eases continues and that the typically quieter winter months don’t hit too hard.
A Treasury spokesman said: “Since the start of the pandemic we’ve acted at speed to support pubs and protect jobs. This includes business rates relief, our job retentions scheme supporting 9.4 million furloughed workers, over one million bounce back loans issued, tax cuts and deferrals, and eviction protection.
“Our grants were designed to help the smallest businesses who were bearing the brunt of the economy shutting down – the £51,000 threshold reflects the accepted value of what constitutes a ‘small’ business.”
❝ We’re being taxed within an inch of our lives. I’m happy to pay my fair share but this is way more than my fair share
Joe Cussens