This week’s rise in business rates has been a postcode lottery for convenience stores, with some reporting rises of up to 80%.
Roger Higgins, MD of RNS Holdings,which has 14 stores in the south and south west, said one outlet in Portsmouth had its rates dropped by 18%, while two Hampshire stores had been hit by increases of 45% and 80%.
The increase in bills, which came into effect from April 1, follows a five-year revaluation of business premises and includes 3% inflation plus 4% to offset government revenue losses expected as a result of appeals.
Higgins said: “I have no idea
how this works. Our Hampshire stores are in neighbourhood areas rather than on the high street. Rateable values are supposed to correspond to rental value. We’ll be having these challenged.”
Most RNS stores had rates increases of 8-16%, in line with figures from the Federation of Small Business and the Forum of Private Business. The FPB said many businesses would be unable to claim Small Business Rates Relief because the revaluation had put the annual rental value of their property above the £10,000 threshold. FPB spokesman Ben Pinnington said retailers should query rates values if they were unhappy.
Association of Convenience Stores public affairs manager James Lowman said this was yet another cost for retailers to bear. “As well as business rates going up, the minimum wage has risen for three years in a row. It means the number of firms going out of business will increase.”
Rachel Barnes
Roger Higgins, MD of RNS Holdings,which has 14 stores in the south and south west, said one outlet in Portsmouth had its rates dropped by 18%, while two Hampshire stores had been hit by increases of 45% and 80%.
The increase in bills, which came into effect from April 1, follows a five-year revaluation of business premises and includes 3% inflation plus 4% to offset government revenue losses expected as a result of appeals.
Higgins said: “I have no idea
how this works. Our Hampshire stores are in neighbourhood areas rather than on the high street. Rateable values are supposed to correspond to rental value. We’ll be having these challenged.”
Most RNS stores had rates increases of 8-16%, in line with figures from the Federation of Small Business and the Forum of Private Business. The FPB said many businesses would be unable to claim Small Business Rates Relief because the revaluation had put the annual rental value of their property above the £10,000 threshold. FPB spokesman Ben Pinnington said retailers should query rates values if they were unhappy.
Association of Convenience Stores public affairs manager James Lowman said this was yet another cost for retailers to bear. “As well as business rates going up, the minimum wage has risen for three years in a row. It means the number of firms going out of business will increase.”
Rachel Barnes
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