Budget 2017: Why UK pubs and venues are under threat

Oliver Parry is worried his pub will have to close if business rate rises go ahead as planned

Help for pubs facing a big rise in business rates announced in the Budget has been criticised as "sticking plaster".

Chancellor Philip Hammon, has announced that 90% of pubs in England will receive a discount.

A £300m fund for local councils to offer relief to the worst-hit firms was also announced.

The British Chambers of Commerce, which represents small businesses, said the system was "broken".

Pubs, restaurants and music venues had warned ahead of the budget that a rate increase coming into effect in April would threaten their survival.

Many live music venues are facing a "serious problem" according to industry body UK Music, which has written to the chancellor to ask for help.

Business rates, based on the value of a property, are due to rise on 1 April for the first time in seven years.

But there are fears pubs and small music venues could be hit particularly badly.

"We want to see some financial help, something has to be done about this situation," UK Music spokesman Anthony Barnes told Newsbeat.

"The whole live music sector is concerned, we have to put some pressure on the chancellor to do something about it."

UK Music and The Music Venues Trust have both sent letters to the chancellor voicing their concerns ahead of the Budget.

They suggest two thirds of independent venues will be worse off as a result and half of those will have "a serious problem" coping with the increase.

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Geoff Priestley is general manager of Portsmouth Wedgewood Rooms, a 400 capacity venue.

"Our rateable value has gone up by 25% this year, which I gather is one of the larger ones around the country that isn't in London.

"I'm paying just shy of £15,000 in rates a year.

"The 25% increase would imply I've got 25% increase in rates to come but until that drops through my doorstep I don't know what the actual figure is - but it certainly won't be going down."

The Wedgewood Rooms in Portsmouth is one independent music venue facing a big rise in business rates

One suggestion has been to put up the cost of a ticket but Geoff doesn't think that will work.

"Given the type of venue we are - we can only withstand a certain ticket price.

"If you start putting it up people will stop coming because it becomes too expensive.

"I think you'd have to increase every ticket by 50% just to clear the extra income.

Ticket price is not the route to do it."

Pubs and bars are facing big rises in business rates, particularly in the south east of England where property rises have risen sharply

One pub owner told Newsbeat he will be forced to close if his rates go up as predicted.

Oliver Parry who runs the Salopian bar in Shrewsbury is facing a rise from £5,000 to £20,000 per year.

"Fifteen thousand pounds a year to us is make or break and it would probably close us.

"It's a shame, I've built this up from no customers to a busy town centre pub. To lose it after 12 years to something which is completely out of our hands is a kick in the teeth to be honest."

Venue owners suggest putting up ticket prices as a result of business rate rises would put fans off going to gigs.

"We've appealed this and we're hoping to hear back. If that's successful we'll keep going and hopefully renew our lease," Mr Parry said.

The government has said it has set aside £3.6bn in a transitional relief scheme to help businesses affected spread the cost.

But that may not be enough to save Oliver Parry's pub.

"Yes, there'll be transitional relief. It's such an alarming jump from 2007, it's taken a lot of businesses by surprise."

"It would be a big help, but our main thing at the moment is relying on our appeal."

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