Member Article

Business rates: relief is needed

Judith Ramshaw, Centre Manager at the Royal Quays Outlet Centre shares her thoughts on the hotly discussed topic of business rates.

There is no doubt the economic downturn has had a huge impact on the high street and we have seen a kaleidoscope of failures ranging from small businesses to big, well-known, brands.

So, when it comes to business rates, there has been very little release in recent years.

The last rates revaluation which can into effect on 1 April 2010 was based on 2008 rentable values, which at the time was at the height of the market in many areas.

The government has now delivered a further blow to many in the retail sector by postponing the next revaluation from 2015 to 2017.

The real difference from 2008 to the present day is that values on many properties have fallen significantly, yet business rates remain set on pre-recessionary highs. This situation, coupled with difficult trading conditions, make for tough times for many in the sector.

For those who have been able to reach an agreement on rent, the review of business rates in 2015 would have been greatly welcomed as it would have likely lead to a reduction in rates payable.

This decision has been met with great disappointment, unfortunately putting more pressure on retailers, and landlords who don’t want to be left with empty properties.

Retail Week is championing a campaign ‘Fair Rates for Retail’ which has encouraged hundreds of businesses and individuals to sign a petition calling for the government to freeze rates and review the way they are determined.

Research undertaken by the Federation of Small Business (FSB) says it is small firms that are proving to be the life blood of the economy, so surely it would make sense to implement legislative measures to aid their growth and prosperity. Let’s hope the government has a rethink on this area and provides some much needed relief for the retail sector.

This was posted in Bdaily's Members' News section by Royal Quays Outlet Centre .