City leisure bosses left ‘dismayed’ at rate hike
BOSSES of city pubs, clubs, restaurants and hotels have held crisis talks over soaring business rates.
Up to 1000 city establishments could be hit with higher bills from April with some facing a hike of around 200%.
That comes on top of higher wage costs due to paying the minimum wage and a rise in goods purchase from outside the UK.
Representatives from the leisure sector say they are “dismayed” at the business rates rise, which they claim is unfairly weighted against licensed businesses.
They are subject to a different way of assessing business rates with a major focus on turnover when calculating final rateable value.
Assessors use sales figures from 2014/15 which further inflates the value for many businesses which reported a bumper year due to factors such as the Commonwealth Games.
Senior representatives from the leisure sector met with Glasgow Chamber of Commerce, Glasgow Restaurants Association, Greater Glasgow Hotel Association and Sauchiehall Business Improvement District to discuss the problem.
Duncan Johnston, general manager of Hotel Indigo, said: “Any potential rise in business rates is of great concern for hoteliers, some of whom are reporting increases of up to 200%.
“At a time when the city is placing a huge focus on boosting the number of visiting tourists, putting an extra strain on hotels doesn’t seem very sensible.
“It will also deter investors, put off by margins if rates are inflated. This would have a negative impact on new hotels coming into the city and investment in our existing stock.”
James Ryan, chairman of Glasgow Restaurants Association, said he feared the impact of the higher business rates on some companies.
He added: “There are many different pressures facing the city’s restaurant businesses which are so tightly squeezed I genuinely believe rate increases could be the final straw.”
Brian Fulton, chairman of the Sauchiehall Street business improvement district, said: “The majority of businesses along Sauchiehall Street are licensed premises faced with the same challenges experienced by the industry as a whole so we are understandably wary of any additional financial burden resulting from an unfair assessment process.”
Stuart Patrick, chief executive of Glasgow Chamber of Commerce, said the leisure community has raised major concerns about the way business rates have been re-evaluated.
He added: “We are in a situation where licensed premises are subject to a different assessment process than businesses in other sectors creating an unequal playing field.
“These companies are a crucial asset in support of the city’s tourism strategy but instead of being able to look forward they have instead come under major pressure with some set to experience a doubling of their annual business rates bill.
“Glasgow’s night-time economy which includes world-class restaurants, bars and nightclubs is a key driver for people choosing to visit the city and this revaluation process sends out the wrong message.”
Mr Patrick urged businesses to check their new rates bills and to appeal if they are affected by large increases.