Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Valuation Office Agency takes account of the (a) presence and (b) size of a pub garden when valuing a pub for business rates; and whether the size of the garden is recorded by Agency.

The VOA is responsible for assessing all non-domestic properties for business rates purposes to determine their rateable value (RV). The RV of any non-domestic (business) property represents the annual rent the property would achieve if let on the open market at a valuation date which is set in law. For the current RVs, which came into effect on 1 April 2023, the set valuation date is 1 April 2021.

The valuation of public houses for rating purposes is on a rental comparison basis. Rents are analysed using fair maintainable trade (FMT) as a unit of comparison.

A pub’s trading potential looks at what it could realistically generate, if run by a reasonably efficient operator. Its potential turnover, also known as FMT, is generally determined by considering income streams from drinks, food, and other areas of trade such as accommodation.

The absence or presence of a pub garden will be reflected in the overall FMT for each pub. It is not possible to identify the extent to which the beer garden contributes to the total RV therefore the size of pub gardens is not recorded.