Massive rates hike for pubs and hotels

A MASSIVE hike in the amount of tax Dundee pubs and hotels will pay has been labelled “outrageous” by a leading trade association executive.

The Scottish Assessors Agency has revaluated the business rates payable from next April, with Dundee’s hospitality industry set for rises of as much as double.

Duke’s Corner, on Brown Street in the city centre, faces a 240% hike in its proposed rates, amounting to an increase of roughly £24,000 per year.

Also set to be hit is the Old Bank Bar on Reform Street, which will see a 183% increase, equating to an estimated £26,000.

Not every business in the city is facing increased costs, however, as some, such as Stack Leisure Park’s Gala Bingo, will actually enjoy cuts by close to half.

Chief executive of the Scottish Licensed Trade Association, Paul Waterson said the rates could be the last straw for many pubs.

He said: “These rates are absolutely outrageous. We all know pubs are struggling due to the smoking ban and the changes to drink-driving laws, with this on top it could be the final straw.

“To have increases now is just ridiculous. Clearly the assessors haven’t listened to anyone and I think the rates should actually be decreasing.”

The review is the first in seven years, and Alison Henderson, CEO of Dundee and Angus Chamber of Commerce, said though she is glad that businesses are finally being informed, she believed some will be concerned at the new rates.

She said: “I think it is a shame we are seeing large increases in the hospitality sector in Dundee and I would urge businesses to appeal if they have a query.”

Richie Hawkins, who owns Taypark House on Perth Road, which will see a 71% rise, equating to £12,000, said the rate rises were a threat to smaller businesses.

He said: “We are restricted in what we can offer due to being a B-listed property and the way the system works means we are being compared to big-chain hotels.

“The council is trying to encourage businesses to do well and I feel it is maybe not a good time to be increasing rates.”

Some businesses will benefit however, with those around Murraygate and the Seagate set to see significant drops, such as M&S, HMV and Rewind.

Ratings expert Andy Boal from Ryden’s commercial property services office in Dundee said the rates are “all over the place” and urged businesses to appeal within six months if they disagree.

Richie Hawkins