A commercial property specialist says the Government’s plan to inject £415 million into Britain’s high streets is not enough to help boost local businesses.
While Loughborough-based firm, Mather Jamie, supports the Department for Communities and Local Government’s plan to back smaller businesses, it says reviewing existing business rates could be more effective.
Tom Meynell, of Mather Jamie, comments: “We welcome the news and think this is a good first step in helping high streets return to their pre-recession occupation levels.
“However, this doesn’t address the issue of high business rates, which is a real concern for many local businesses and in our view is hampering the recovery of the high street.
“While in recent months we have seen the market pick up, we feel more needs to be done.”
As part of the funding, the Government aims to reduce the tax burden on small businesses, with 300,000 small retail firms across the country, with rateable values up to £50,000, receiving a £1,000 discount on their tax bill in 2014 to 2015 and 2015 to 2016.
Tom continues: “This is a quick boost to assist smaller businesses, but we don’t see it as an effective long-term solution.
“As the Government has now delayed the 2015 Rating Revaluation until 2017, businesses are continuing to pay rates that reflect pre-recession property rental levels, which were significantly higher than those we currently see on the high street.
“The last review took place in 2010 and was based on occupation figures from early 2008, meaning the rates businesses are paying do not reflect today’s market.”
Figures compiled by the Local Date Company on behalf of accountants PwC found that 18 shops closed daily during the first six months of 2013, based on a study of 500 UK town centres.
Tom adds: “As part of its long-term economic plan, the Government wants to help these businesses create new jobs, but the most effective way to allow smaller companies to survive and thrive would be with a revision of existing business rates.
“Business rates are one of a company’s biggest outgoings, so if we want to get our high streets back to the occupation levels we had in 2007 and 2008 we need to look at measures that will support existing businesses and encourage new start-ups.
“We would also like to see empty rates relief extended for property owners, so more empty buildings are exempt from paying full business rates while unoccupied, or the introduction of a scheme to assist those with unoccupied premises.”
