Veteran retailer Bill Grimsey has repeated his call for a review of the business rates system in light of new figures which show the extent to which provincial commercial property values have fallen since the last revaluation.
Stockport Town Hall
Mr Grimsey, who recently led a study into the problems facing the high street, has spoken out once again after it was revealed that values in prime areas of Greater Manchester have fallen by an average of 31 per cent since 2008.
In Stockport the figure is an astonishing 47 per cent but, due to the postponement of the next revaluation from 2015 to 2017, businesses will continue to pay rates calculated using pre-recession values.
This provides further evidence that the system is no longer fit for purpose, claims the former Wickes and Iceland boss.
“Is it any wonder why Stockport has some of the highest levels of empty shops in the country when they’ve seen rental values fall by 47 per cent and last year they had the biggest increase in business rates in 20 years.
“Too many small businesses are paying artificially high business rates. The Chancellor needs to make this a fairer tax because it’s holding the high street back and pushing businesses over the edge,” Mr Grimsey said.
Ratings expert John Webber agrees that the postponement of the revaluation is making the situation worse for businesses in the North, which are effectively subsidising those in the South East.
“There is no justification for hard pressed retailers in Oldham, Rochdale and Stockport to be forced to subsidise the business rates of jewellers in Bond Street and tailors in Mayfair – it only seeks to illustrate how out of touch this government is with life outside of central London,” he said.
