Notice: The Chamber's documentation and customs declaration services announce festive opening hours. Click here to view.

The chairman of pub giant JD Wetherspoon today alleged that the business rates system in Scotland discriminates against ventures like his who charge lower prices.

Tim Martin also claimed that the current system encourages pubs to charge more.

The company's stated aim is to provide customers with good-quality food and drink, served by well-trained and friendly staff, at reasonable prices.

Wetherspoon owns and operates more than 850 pubs in the UK and Ireland, and it also has more than 50 hotels.

The firm this morning issued its half-year results for the 26 weeks to January 23.

Mr Martin said: "Following a traumatic two years for many businesses and people, the ending of Covid restrictions has brought a return to more normal trading patterns in recent weeks. Trade for the last three weeks was 2.6% below the equivalent period in 2019 - reflecting an improving trend."

On the subject of business rates north of the border, he said: "Business rates are supposed to be based on the value of the building, rather than the level of trade of the tenant. This should mean that the rateable value per square foot is approximately the same for comparable pubs in similar locations.

"However, as a result of the valuation approach adopted by the government assessor in Scotland, Wetherspoon often pays far higher rates per square foot than its competitors.

"This is highlighted by assessments for the Omni Centre, a modern leisure complex in central Edinburgh, where Wetherspoon has been assessed at more than double the rate per square foot of the average of its competitors, and for The Centre in Livingston, a modern shopping centre, where a similar anomaly applies.

"As a result of applying valuation practice from another era, which assumed that pubs charged approximately the same prices, the raison d'être of the rating system - that rates are based on property values, not the tenant's trade - has been undermined.

"Similar issues are evident in Galashiels, Arbroath, Wick, Anniesland - and indeed most Wetherspoon pubs in Scotland.

"In effect, the application of the rating system in Scotland discriminates against businesses like Wetherspoon, which have lower prices, and encourages businesses to charge higher prices. As a result, consumers are likely to pay higher prices, which cannot be the intent of rating legislation."

Wetherspoon, founded in 1979, has around 40,000 employees.

Its pubs in the north-east include Archibald Simpson and Justice Mill, both in Aberdeen city centre. Its hotels in Scotland include the Saltoun Inn, Fraserburgh.

More like this…

View all