April 05 Rate issue hits headlines
Rents force trader out 5 May 2005
Help us find a new shopping identity 15 Jun 2005
From the Campaign Series, first published Thursday 5th May 2005.
CAERPHILLY traders are being driven out of town after being hit by a major hike in business rates.
A non-domestic rate increase of 250 percent has been the final straw for owner of Gittins' Antiques, John Gittins, 61, forcing him to shut up shop after trading for several decades.
"I've been thinking about closing for a while," said Mr Gittins who runs the shop with his wife Mary. "But I've got no choice now. I've been in the antiques business for 46 years, and it is such a shame. There is just nothing up the top end of the town to attract people anymore, and the cost of rates are putting people off renting."
Mr Gittins is to embark on an internet course for antique dealers when he closes the shop.
The Hockey Shop, also situated on Clive Street, has also seen rates go up dramatically by 250 percent. Owner Tracey Davies said that she has been considering closing for a while, mainly due to loss of business, but the increase in the business rate has definitely sped things up.
Tim Bishop, 35, who runs the 10-week-old Clive Street delicatessen, Delicious, said that he was financially prepared for an increase of around ten percent.
"I budgeted for a small increase, but never this much. It's true we're not situated in the best place in town, but the cost of renting is just not financially viable at all."
Independent retailers situated along Cardiff Road have also suffered a significant growth in rates, yet not as dramatic as those on Clive Street. Neil Morris of chemist B and P Morris said that his increase of 25 percent was "disgusting" and Cath Rodaway, manager at Bloomcraft florist said the additional £90 a month she was forced to pay was "far too much". Leigh Shattoch, who runs Cardiff Road-based The Source said his business rate had gone up by 25 percent. Mr Shattoch is also chairman of the recently established Caerphilly Independent Retailers Partnership. The partnership was set up to safeguard the interests of the 80 independent traders in Caerphilly.
A meeting has been organised for retailers at 5pm on Monday May 23 at the Twyn Community Centre.
Mr Shattoch considers that appealing against the increase in rates would be more effective if it was done collectively rather than individually.
Caerphilly AM Jeff Cuthbert said: "I am not aware of individual cases in the town but I am aware of the general position regarding business rates. I have had a meeting with the Federation of Small Businesses concerning the impact of business rates and have raised the issue with the appropriate Minister.
Mr Cuthbert continued: "If they would like to contact me, either as individuals or collectively, I would be willing to meet with the and see how I can assist or represent their interests."
24.8.05
Our Concerns were raised at a Meeting with Sue Essex and CIRP management committee at the National Assembly on 24.8.05 where we shared some our members concerns , and suggested that changes were required to the current system.
Tuesday, February 28, 2006
Hi xxxxxxxxx
thank you for your response.
Following a meeting of nearly 40 CIRP members we relay to you some of the main points worrying our traders on the issue of business rate formulation. The point made that the majority of business in Wales would not have been in Transition should a relief scheme be introduced concerns our members, 90% of which have rateable values below £25000.
This scheme would probably suit our members.
Hardship Relief and other schemes to help should be on the back of the rates bill explaining to rate payers that they have options. The majority of members were unaware that this existed.Maybe this can be included on the rates Bill. One of our members who attended the Assembly meeting took Sue Essex' advise and rang CCBC at which point they were more interested how he knew about the relief as opposed to helping Him. One member pointed out that it made them feel very demoralised to admit that they had to be experiencing "Hardship" to get what English businesses are entitled to. Some members actually used the words "embarrassed to ask for hand outs." One Member made a point about higher rents and the link to business rates and rent.
There is also concern of escalating rents in the town, which in turn raise the cost of non -domestic rates, which in turn increase water rates (which are linked to rateable value)?
The Comment on The "right first time" valuation was a hot topic when as members on Clive st pointed out their rents increased 250% then decreased 50% after an appeal- This appeal cost members time and therefore money-something that they can do without considering the 10 year retail lows recorded over the past months.
The link with zone A (ie the first 6.1m are the highest rateable areas) was also a concern. 50% of our members pay 100% zone A as the shops are 6.1 m long or under. This Zoning system works for larger stores and supermarkets as they effectively get a subsidised rate after 6.1m at the point of zone B but can still put high end goods there. Our members suggested a system for stores 6.1m and under have a fairer system with a staggered rating system from the most profitable space at the front of the store to the less profitable areas at the back.
The reality of retail is the same if you have a large or small store. The only problem is that larger stores get reduced rates at zone b,and therefore have a reduced cost /unit floor area for other products and therefore will have a better margin , Most of our members do not get this luxury, and therefore cannot be as competitive.The smallest businesses paying the highest rates. These businesses are primarily one shop businesses so are unable to spread costs over many stores.
These are the initial points raised.We thank you for the opportunity to review the current business rate system. We hope to hear from you in the near future so we can make some head way, help the small independent retailer stay on the high street, and keep town centres at the heart of the community.
Leigh Shattock Chairman -Caerphilly independent retail partnership.