Two of the region’s largest zoos, Banham Zoo and Africa Alive, are bracing for a substantial increase in their annual business rates following recent budget announcements. The Zoological Society of East Anglia (ZSEA), which operates both parks, will bear the brunt of these increased costs, potentially impacting their conservation efforts and operational budgets.
Key takeaways
- Banham Zoo’s business rates are set to rise by 65%, from £64,000 to over £106,000 annually.
- Africa Alive faces a 50% increase, with rates climbing from £37,000 to £56,000 per year.
- These increases are attributed to a new, higher valuation of buildings for business rates and the removal of a 40% discount.
- The landlord, Goymour Group, also anticipates additional costs due to business rate reforms and minimum wage increases.
Impact on Zoos
Banham Zoo is now facing a six-figure business rates bill exceeding £106,000 annually, a significant jump of 65% from its current £64,000 payment. Similarly, Africa Alive in Kessingland will see its rates increase by 50%, rising from £37,000 to £56,000 each year. These hikes come despite the Chancellor’s claims of introducing the "lowest tax rates since 1991."
Budgetary Changes Explained
The increased business rates are a consequence of a new, higher assessment of building values used for calculation, coupled with the discontinuation of a 40% discount that had been in place since the pandemic. While the budget aimed to reduce rates for many retail, hospitality, and leisure properties, the combined effect of these changes means a net increase for many businesses, including the zoos.
Wider Financial Pressures
Beyond the zoos, Goymour Group, the landlord for both Banham Zoo and Africa Alive, is also facing increased financial pressure. The group, which also operates the ROARR! dinosaur park and a caravan park, estimates that business rate reforms and minimum wage increases will cost them an additional £60,000 next year. This is on top of a £150,000 rise in their wage bill earlier this year due to increases in employers’ national insurance contributions and the national living wage.
Sources
- Zoo faces six-figure business rates bill after Reeves budget, EDP24.
- Zoo faces six-figure business rates bill after Reeves budget, East Anglian Daily Times.
