Pub will have to raise its prices after huge business rates hike
THE owner of the Black Boy in Caernarfon has warned prices will rise after being slapped with a business rate hike of £1,000 a week.
John Evans sounded the cost warning last week as it becomes clear the hospitality sector is set to take a “serious hit” from the rates revaluation.
This will see many hotels, pubs and restaurants hit with big bill increases.
For the Black Boy the rateable value of the property - based on rental value and turnover - has been increased from £101,000 to £225,000.
This calculates as a £55,000 increase in the business rates paid annually - just over £1,000 a week.
John, who employs 85 staff at the pub, said: “This is a well run business and now I have to find an extra £1,000 a week from somewhere.
“I do not want to reduce staff as this will affect the quality of service we offer. That means it has to be reflected in the price.
“We now have to sit down and see where prices will increase and this could mean another couple of pence on a pint and other changes.
“We don’t want to do it to customers but we don’t want to compromise on the service we offer.
“There will be many other businesses in the same situation, business rates will close down some businesses and drive John Evans - employs 85 staff more people out of town centres.”
The Black Boy is not alone in facing increased bills after April 1.
The revaluation was carried out last year by the Valuation Office Agency for the first time in seven years.
Rateable values are normally based on rental values of properties but with hotels and pubs turnover is also used to calculate the total and North Wales could be set to suffer from its own success.
This has seen some of the leading hotels in the region hit with dramatic hikes in their rateable values, which in turn leads to rises in business rates paid.
The Imperial Hotel in Llandudno faces an annual increase from £237,000 to £302,000, while the St George’s Hotel in the town is being hit with an increase of £50,000.