A beloved Somerset establishment, the Cider Barn, may be forced to close its doors following an alarming 500% hike in business rates. Since 2012, Jason Law has operated the Cider Barn just off the A371 in Draycott, near Cheddar, serving visitors a selection of Somerset ciders, local beers, sourdough pizzas, and classic pub fare. Located on the edge of the Mendip Hills, it has become a cherished spot for locals and tourists alike.
However, recent government revaluation has caused the business rates bill to surge from £100 to £600 monthly, with the rateable value jumping from £4,500 to £15,000, as determined by the Valuation Office Agency. Mr. Law expressed frustration at the complexity and lack of transparency in the process, stating, “You need to be a nuclear physicist to understand it.” He worries that continued increases will force prices higher, driving customers away.
Business rates are collected by Somerset Council on behalf of the Treasury, with local authorities retaining a portion to fund public services. Mr. Law highlights that the playing field has drastically shifted since the pandemic, with much of the previous relief phased out, making survival harder for small enterprises like his. He pointed out the irony of VAT cuts on major tourist attractions while accommodations, eateries, and pubs face soaring costs.
READ MORE: Strength Training Reduces Risk of Stroke and Heart Attack Death by 19%
READ MORE: Somerset Village Rallies to Raise £30,000 in One Week to Halt 125-Home Development on Protected Green Space
“This is make or break time – it’s soul-destroying,” he said, emphasizing the importance of regular local patrons and the toll that higher rates take during quieter months. Other local businesses share similar struggles. Jules Sayer, owner of Petruth Paddocks campsite in Cheddar, has witnessed his business rates rise from £107 to nearly £2,900 per month, an increase of almost 2,700%. He describes the process as opaque and the lack of consistent communication as worrying.
For small operators without corporate backing, such dramatic hikes are devastating. “Your motivation goes, the customers notice that and all of a sudden you start losing business,” said Mr. Sayer, who employs 25 to 30 people ranging in age from 14 to 76. Both entrepreneurs call for clearer, stable plans for business rates over a multi-year horizon to allow for sound budgeting.
These issues have garnered political attention. Tessa Munt, Liberal Democrat MP for Wells and Mendip Hills, raised Mr. Law’s case in the House of Commons, stressing how sudden increases threaten the survival of vital local businesses. Business Secretary Peter Kyle responded that the government has permanently lowered the business rates multiplier for eligible hospitality and retail businesses, benefiting hundreds of thousands nationwide, and emphasized ongoing support for both rural and urban enterprises.
Despite reassurances, the soaring business rates continue to place extreme pressure on small Somerset businesses, threatening cherished local institutions like the Cider Barn and the livelihoods they support.