Shrewsbury landlord says massive rates hike will ruin his business

Oliver Parry, who runs the award-winning Salopian Bar in Smithfield Road, Shrewsbury, has been told the rateable value of the pub will rise from £11,000 to £42,500 under new government rules – and the bill he will pay is set to go up proportionally to £20,000.

Although the payments will be phased in over the next three years, he believes the business will "go bust" within 18 months.

He has now launched an appeal against the proposed hike which has been pushed through by the government.

He said: "I will be facing the highest business rates increase of any pub in Shropshire.

"I know there are several pubs in Shrewsbury whose rates are doubling but I haven't heard of any others whose rates are going up by so much.

"I appreciate that the last business rates rise was in 2007 but since then I have built up business.

"It has taken me 11 and a half years to build up the trade in this pub and if we lose this appeal I can see us going bust within 18 months.

"It will be a kick in the teeth.

"Our profit margins are so small and the rates so huge, I cannot see how we will be able to afford to keep going."

Mr Parry did not realise his pub's rateable value was due to rise by such a dramatic amount until a friend told him he could calculate it online.

"When I saw it come out at £42,500 I realised that there was no way we would be able to pay it as we do not make a big enough profit," he said.

James Hitchin, director of Shrewsbury BID, added: "The BID is urging businesses to check their draft rates revaluation on the Valuation Office Agency website and to appeal if they believe that the new rateable value assigned to their property is incorrect with evidence showing if a mismatch between the rent paid and the calculated rateable value are apart."

Last week Ludlow's MP Philip Dunne met the Chancellor of the Exchequer, Philip Hammond, to discuss the impact of the business rate review