Struggling high street firms left stranded by rates package
Responding to the Government’s business rates announcement for pubs in England, Federation of Small Businesses (FSB) Policy Chair, Tina McKenzie, said:
“The Government has passed up a critical chance to back struggling high street businesses.
“Although this news will bring a welcome, temporary reprieve for pub and music venue owners, small firms across the rest of the hospitality, leisure and retail sectors – from your local greengrocer, hairdresser and café to the nail bar or florist – will be incredibly disappointed to not have been thrown any type of lifeline. It’s worrying that the Government repeatedly fails to recognise the difficulty that these businesses are in.
“Losing the previous 40 per cent discount, on top of April’s revaluation of the rateable value of premises, and changes to the formula behind the bills, will take a heavy toll on small firms, threatening jobs and our high streets. A typical small bakers or dry cleaners will face a 52 per cent increase in its business rates bill over the next three years.
“The Government has the power to apply the full business rates relief already built into the system across the sectors, yet it has used this moment to exclude wider hospitality, retail and leisure. It also has the opportunity to raise significant extra revenue from the largest business premises, but has instead decided to impose the biggest increases on small high street bakers, gyms and restaurants.
“With more cost pressures due to hit in April alongside the rates rise – from energy standing charges to employment costs – this situation is becoming unsustainable for many. Some are having to put the brakes on expanding and developing their business, while others are being forced to lay off staff or even close their doors for good. The Treasury must look again at the Spring Forecast to provide substantial help for these struggling small firms.”