Non-Domestic Rates: Licensed Premises

Mrs. Spelman
To ask the Secretary of State for Communities and Local Government whether the provision of televisions showing Sky programmes by licensed premises is deemed to be a material condition that increases the premises’ rateable value in respect of the Valuation Office Agency's 2010 rates revaluation.

Barbara Follett
Valuation officers will consider the presence of Sky TV and other forms of entertainment on offer as part of a wider consideration of all factors that may impact on the trading potential of a public house.

Rental values are determined in the market according to the trading potential of a pub on the assumption it is run by a reasonably efficient operator, who responds to the normal trading practices and competition of the locality in which the property is situated. Valuation officers are required to make a similar judgement when assessing public houses for business rates purposes.

This method of valuation is agreed with the industry and is a tried and tested way of valuing public houses.