Anger over Sky increase

Another hike in the cost of screening Sky sports in pubs has sparked anger among operators.

Sky fees for pubs from September will cost about 12% more after average rises of 20% over the past five years.

The rises are being linked to the Government's latest business rates, which were revalued in April.

Premises whose rateable values have increased could end up paying as much as 25% more in subscriptions, warned Nick Bish, chief executive of the Association of Licensed Multiple Retailers.

Sky has pledged that no pubs will pay more than one rateable band's-worth of rises in the first year and claims it has capped increases to just 3.7% under its transitional relief scheme against the valuation average of 17%.

But Derek Andrew, managing director of Wolverhampton & Dudley's estate of 536 managed pubs, described the relief scheme as "cynical pacification" and said the new fees would cost "several hundred thousand pounds" across its estate. He warned that the escalating costs would mean the conversion of more marginal managed pubs into tenancies in the future.

Andrew has removed Sky from 70 pubs over the past few years and will review its viability in the remaining 280.

Peter Lawson, landlord of the Travellers Rest in Draycott, Derby, has cancelled his Sky subscription after learning the latest rise would add £160 a month on top of his existing £300 fee.

David Watt, co-licensee of the Kings Head in Letheringsett, Norfolk, said he couldn't afford Sky even before the latest increases.