Traders fear "astronomical" increases in rates (From Western Telegraph)

Narberth traders fear "astronomical" increases in rates

11:20am Tuesday 27th October 2009 in County News

Challenges are being mounted to proposed massive rate increases which some Pembrokeshire businesses fear could force them out of existence.

New business rateable value figures just published show 'draconian' and 'astronomical' increases in a number of cases - particularly so in Narberth, where one trader is contemplating the prospect of a 440 per cent hike.

A typical small High Street business in the thriving town is looking at its rateable value being increased from £3,800 to £12,000, said Narberth Chamber of Trade secretary, Gordon Barry. And he warned: "If these increases are allowed to be passed through, it will mean the death of the small independent businesses that have made Narberth the unique and sought-after place to visit.

"Do the valuers wish to remove the shopping and service centre of Narberth from one of the attractions of Pembrokeshire? Because that is what will happen if these charges are passed uncontested."

The threatened increases - described by Mr Berry as 'draconian' - have resulted from the rateable value reassessment carried out by the Valuation Office Agency during April 2008, before the economic downturn. They are due to take effect from next April.

Narberth is particularly hard-hit because the town benefitted from Rural Rate Relief before March 2007, which helped the prosperous community to develop, pointed out Mr Barry.

Although businesses in all sectors across Pembrokeshire are reporting increases in rateable value, the Narberth traders feel they have been singled out for the 'horrific and unattainable'

increases, he added.

"Comparing the Narberth figures with other Pembrokeshire towns, we found that their rateable values had, on average, have only been increased by 20 per cent, but ours have gone up by 210 per cent," he pointed out. The figures have handed small businesses a 'timebomb', Pembrokeshire's Conservative Assembly Members said this week.

“Everyone is now on tenterhooks waiting to see what the final figure will be and it is causing real stress for many small businesses,” said Preseli Pembrokeshire AM Paul Davies. Research undertaken by the Welsh Conservatives revealed Tenby’s hotels will be facing an average increase of 27% in their business rates for 2010, equivalent to an average of £2,800 per business.

“If this research is accurate and reflected around the county then it could be the final nail in the coffin for struggling businesses,” said South Pembrokeshire AM Angela Burns, who has received 'an avalanche' of calls from worried businesses.

“I fear that higher rates could be the difference between swimming and sinking for many of our smaller high street shops and businesses,” she said.

Traders' groups throughout Pembrokeshire are now considering their responses to the revaluation figures, with Tenby Chamber of Trade and Tourism seeking advice from one of the UK's foremost rating advisors, with a workshop for members in January.

Said vice-chairman Chris Osborne:

"Yet again, Tenby's economy is challenged by business rates, but the more concerted the action we take, the greater the likelihood of a fairer outcome for the town this time."

Pembrokeshire Tourism, which represents over 500 industry members, will be taking the issue to next week's Wales Tourism Alliance conference.

Chief executive Alison Belton described the increases as 'astronomical' and added:

"Unfortunately, the legislative situation is that the current economic challenges cannot impact on the rating evaulations. This is nonsense, of course, and must be revisted by all politcal parties immediately.

"The economic benefit which the tourism industry brings to Pembrokeshire is over £400million,and it is essential that the industry remains competitive, buoyant and profitable to ensure future product investment," she said.

And MP Stephen Crabb commented:

“Raising business rates in the middle of a recession could be disastrous for many firms across Pembrokeshire. A large increase in rates will only compound the challenges already facing the local business community at this time.”

Pembrokeshire County Council collects business rates on behalf of the Welsh Assembly Government, which prescribes the rate poundage, of 'multiplier' from the Valuation Office Agency's (VOA) rateable value assessment.

Said a council spokeswoman:

"We are concerned that the increased rates may affect the financial viability of some small businesses, and will be making representations to the Welsh Assembly Government on the matter".

Options open to the WAG include postponing the revaluation exercise until the economy picks up; drastically reducing the 'multiplier' and introducing transitional rate relief.

But the VOA commented:

"An increase in rateable value does not necessarily mean an increase in the rates bill because there are parallel falls in the rate multiplier determined by the government - in fact, 60 per cent of businesses will see a reduction in the rates bill from their council as a result of revaluation"

Businesses are being urged to log on to www.voa.gov.uk/2010 to check valuation details and to contact the VOA with any issues.