Although the Chancellor has promised a review of the business rates system in the UK, towns remain concerned at the level of empty stores on their high streets in the meantime. However, Rochdale in the North West has made the decision to take matters into its own hands and proactively tackle the issue head on by offering prospective shopkeepers an attractive incentive to enter the local economy.
The council’s cabinet are next week expected to approve an initiative offering new businesses the chance to slash business rates for two years when taking up a vacant unit in certain areas of the town centre. Under the plans, shop tenants will receive an 80 per cent discount on their business rates for the first year, which will then drop to a 50 per cent discount the following year.
Council leader Richard Farnell believes the opportunity will allow the town to hugely reduce its vacancy rates.
He says; “Business rates are one of the single biggest obstacles facing new businesses and a key reason why many ultimately fail.
“Nationally, over 31,000 independent shops failed in 2013 alone. “We cannot reverse the decline on our High Street, which is mirrored in towns up and down the country, without dealing with this critical issue – big reductions in business rates will hopefully see new shops open, help bring more shoppers and breathe new life into the town centre.”
At present, Rochdale’s town centre vacancy rate stands at 22.7 per cent, which is substantially higher than the national average of 13.5 per cent. While Rochdale may not be the worst affected town in the country, therefore, Councillor Farnell is adamant that the council has the responsibility to address the issue as a matter of urgency.
New retailers will be able to apply for a part in the scheme should they take up any of the currently empty shops on South Parade, Baillie Street, The Walk or Yorkshire Street. As 23 units are available, the council has high hopes that at least half of them will be filled by the start of next year should the scheme gain majority approval from local councillors.
Another aspect of the initiative will concern itself with attracting consumers back into the town centre by offering free car parking for up to 3 hours from April. This will be trialled over the Christmas trading period, with local residents and shoppers from outlying areas able to take advantage of free parking from 10am between the 13th of December and the 3rd of January.
Councillor Farnell concludes; “This pilot scheme will cost £100,000, but it will be money well spent – investing in our town centre is a big priority for the council.
“We are also talking to the owners of empty shops to persuade them to reduce rents which will be another huge incentive for retailers to open up new shops.
“This is a fantastic scheme which will be a huge boost to our High Street and major step forward in reviving our town centre.”
Do you think this scheme will prove successful if passed by councillors?
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