The leader of the Liberal Democrats has said the Government has left “thousands of pubs in the lurch”.
Vince Cable’s comments are based on research from his party, which claimed at least 4,500 pubs eligible for business rates relief are still awaiting payment, with a total of £4.54m still outstanding.
Chancellor Philip Hammond announced last March that pubs hit with higher business rates would receive a £1,000 annual discount, if their rateable value was under £100,000.
However, six months on, four in 10 councils in England haven’t started distributing the relief, with many blaming software problems, the absence of clear guidance from the Government and lack of time to put local schemes in place, according to the Liberal Democrats.
Cable said: “Thousands of pubs faced with crippling tax hikes are being left in the lurch by this Government.
“This rushed scheme has been plagued with problems from the start. Local councils have had to deal with software glitches, a lack of clear guidance from ministers and little time to prepare.
“Pubs form the bedrock of local communities across the country, but many now worry they will have to close their doors.”
Instead of the £1,000 “temporary sticking plaster”, Cable said that to properly protect pubs business rate rises should be capped at 12.5%.
“In Government, Lib Dems fought to secure legislation to ensure protection of pubs from unfair behaviour by the big pubcos which supply their beer.
“It would be unforgivable if the same pubs are now forced out of business by the Government’s own incompetence.”
Statistics from the party’s research show that 150 local authorities have started distributing funds, with a total of £6.7m paid out to just over 6,500 pubs.
This means that an estimated 4,500 pubs are continuing to wait for relief from 100 local authorities that are still finalising schemes.
Of these, 41% are waiting for software to be updated or tested, 21% are still to give final approval to schemes, 15% are in the process of contacting local eligible pubs and 7% blame delays on a lack of clear guidance from the Government.
