Pub landlord halfway ruined as city quadruples business rates

Steve Whiting, who owns the Halfway House on Fleshmarket Close, saw his annual bill soar from less than 2000 to more than 8000 under the controversial review of rates.

The 55-year-old said he had been forced to lay off a barmaid as a result of the "horrendous" hike, as well as taking on an extra 15 hours per week himself in an effort to lessen the blow.

Assessors more than doubled the rateable value of the Halfway House and also ruled the pub - officially the smallest in Edinburgh - could no longer be deemed a "small business", which meant Mr Whiting lost a 50 per cent discount.

The pub, named Edinburgh Pub of the Year for 2009/10 by the Campaign for Real Ale, is among thousands of businesses to be affected by the recent "revaluation".

Mr Whiting, who lives in Glenfarg and took over the pub with wife Barbara in April last year, said: "One year into the business and we're hit with this. I find it incredibly unfair.

"For me the whole thing is colossally disappointing, to have our rates quadrupled at one go. Survival is going to be tough, I just hope my wife and I can ride out the storm."

He added: "For years I wanted to get my hands on the Halfway House, bearing in mind it is iconic, and I sold up my hotel and restaurant in Perthshire to raise the capital for it.

"I sank my life savings into this and took a huge loan."

Mr Whiting has lodged an appeal against the rateable value placed on the pub with the Lothian Valuation Joint Board, but a decision is not expected until the end of the year.

The pub's last quarterly turnover was 13.5 per cent down on the same period last year, which Mr Whiting put down to the recession and cheap alcohol deals offered in supermarkets.

"Trading is tough and then this happens. It's a punch in the stomach," he said. "The whole thing just seems so high-handed and we feel like an easy target."

The new rates bills were enforced in April this year and the Evening News has already told how more than 2000 appeals have been lodged in Edinburgh. The new valuations were based on estimations made by assessors in 2008 and business leaders expect around 40 per cent of firms to have lodged an appeal by the time the window for appeals closes in September.

A survey of Edinburgh hotels found that 47 out of 48 leading hotels in the city had seen their rateable value increased since the revaluation took place.

Mr Whiting added: "We spent all our life savings buying a free house pub like this and it just feels like a kick in the teeth when this sort of thing happens."

A spokesman for the Lothian Valuation Joint Board Assessor said it would be "inappropriate to make any comment" because Mr Whiting had lodged an appeal. A Scottish Government spokesman insisted almost 60 per cent of businesses in Scotland now pay less or no more in business rates as a result of revaluation, with average savings of more than 1300. "A robust appeals process is open to all wishing to appeal their valuation," he added.