Pier boss 'worried' as business rates jump by £43k

The owner of a pleasure pier says he fears for the future of his family-run firm after finding out his business rates are due to more than double.

Claremont Pier, in Lowestoft, Suffolk, is currently paying £31,000 a year, but in April this will jump to £74,000.

It comes after it was revealed rates could increase sharply over the next three years as Covid-era support is phased out and property values are updated.

The Treasury says it "backs Britain's businesses" and is "stepping in" to help them – but the pier's director, Ben Llewellyn, describes the hike as a "kick in the teeth".

The pier features bars, nightclub, amusement arcade, shops and food outlets.

"It took the wind out of my sails and I didn't know what to say or what to do [when I found out]," he said.

"It's absolutely ridiculous and everything is stacked against us at the moment.

"But, we will work harder and we will try out hardest to make it work and keep the business alive, but sometimes grit and determination only last so long."

Even if Llewellyn is able to keep the seaside attraction afloat, he fears he may have to hike prices, reduce staffing levels, and cut down the number of days the site opens.

While ratepayers can request details of how their valuation is calculated and ask for it to be reduced, Llewellyn says the process often proves pointless.

"We've tried this before where we've contested, but all they do is turn round and say 'no'," he adds.

"So, is it really worth wasting hours and hours of time filling out forms and trying to talk to people when the computer just says no?"

The increase for the pier comes after the government announced this week it would water down business rate increases for pubs.

Many of them – as well as other types of businesses - have seen their rateable value increased by the Valuation Office Agency (VOA).

The VOA, which does not set business rates, says this could be due to changes in the market and firms recovering from the effects of the pandemic.

"At the last revaluation, many businesses were significantly affected by the pandemic, which resulted in much lower rateable values," a spokesperson said.

"Any businesses that have since seen a recovery in their trade - by law we must reflect this in our new valuations."

Claremont Pier has two bars-cum-pubs on site, but they do not qualify for "any sort of relief".

"You've got businesses that do not fit into that criteria of a pub, but they still have all the ongoing problems a pub has," said Llewellyn.

"It's nice for the pubs that they can have that sigh of relief, but it's not just pubs [that need help]; it's the whole hospitality sector."

The Treasury acknowledged "some firms may face higher costs" but said it had "stepped in to cap bills and help as part of a £4.3bn support package".

It said this meant most properties with business rate increases would see them capped at 15% [of their rateable value] or less, or at £800 for the smallest properties.

"We back Britain's businesses which is why we have capped corporation tax at 25%, the lowest rate in the G7 [group of countries with large economies]," a spokesperson said.

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