Rachel Reeves' reforms have pushed up the price of sports TV subscriptions so much that pubs across Britain will be forced to stop showing live football, landlords have claimed. Following the Government's tax raid, publicans have said they would have to cancel their Sky Sports and TNT Sports subscriptions because their business rates valuations were due to increase fees by thousands of pounds a year.
Sky Sports and TNT Sports (formerly BT Sport) charge pubs based on their rateable value - an estimate of what it is worth on the rental market and is used for calculating their business rates - which can cost thousands of pounds per month. As Government inspectors from the Valuation Office Agency (VOA) prepare to revalue commercial properties across Britain this year, some pubs are also facing an increase in their rateable value of as much as 2,000% - adding even more to their tax bills. The combination of both has left many fearing they will be forced to stop showing sport altogether.
According to The Telegraph, Paul Sandford, 57, landlord of the Railway Tavern in Dereham, Norfolk, said he will cancel his Sky and TNT subscriptions later this year due to a predicted combined annual increase of £7,200.
"We wouldn't be able to pass it on to the customer, so we wouldn't be able to show it," Mr Sandford said. "We're all in the same boat. There isn't a pot of spare money to fund all these extras. We've sucked up as much as we can over the last five years but to have the Sky hike thrown at us as well as a rate increase, it's just not feasible."
This comes at a time when Britain's pubs are already suffering. On top of the threat posed by business rate changes announced in the Chancellor's Budget, they also face surges in National Insurance and the minimum wage, soaring energy prices and new drink-drive laws.
Ms Reeves is expected to reveal plans for more support for pubs in the next few days. However, there are fears that it will not go far enough.
According to The Telegraph, Mr Sandford, who stopped taking a wage from the pub last year to stay afloat, currently pays £12,000 for Sky and £6,000 for TNT Sports a year. However, a revaluation of his rates from £15,000 to £20,000 is predicted to increase the price of sports coverage to £16,800 and £8,400, respectively - based on the customer's own estimations.
"It's just never-ending and it seems to me like the Government does not want pubs," he said.
The Express contacted Sky for comment and a spokesperson said: "Rateable value is one of many considerations that inform our pricing decisions. Our pricing reflects the unmissable experience and line-up of content that adds value to our customers' businesses."
The Express has also approached TNT Sports for comment.
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