Mixed benefits from new Business Rates

Although most businesses in the North are expecting to benefit from the 2017 business premises revaluation, it seems that some will suffer. Local business Knight’s of Hornsea is one of the worst affected in our town. Having received their 2017/18 rates bill, owners Steve, Louize and Joan have been left bereft by the massive hike in the rateable value of their property in Newbegin. Only built in 2014 by Kemp Property, the property didn’t exist at the time of the last revaluation and is therefore only one of a handful of business premises in Hornsea affected by the scheme; the majority of whose premises have now fallen below the new threshold. So, although the government promised to raise the threshold for small businesses paying business rates from £12,000 to £15,000 – Knight’s was previously on the cusp at £12,000 – and thus removing around 600,000 small businesses https://www.viagrapascherfr.com/sildenafil-moins-cher-yvelines/ from paying business rates altogether, Knight’s premises are one of the minority that has in fact risen; its new rateable value of £19,500. During its recent budget, the government announced a cap on rates increases of £50 per month, which will apply to Knight’s. Speaking to Hornsea Community News, one of the owners said, “We are devastated to find ourselves in this position. Our business occupies just 124 sq m but it is the way in which the rateable value is calculated that affects us so badly. A larger business in this town similar to our own, occupying premises almost twice the size, remains at rateable value of £12,000 and will for 2017/18 pay no business rates whatsoever, dropping below the new threshold, whilst our own has gone up! It’s all to do with zoning and potential rental on the open market, and although our premises are not huge, we’ve been identified as having just three zones whereas many other premises have several zones, including free areas, which means that overall their premises remain or fall under the new threshold. Another influencing factor is how the premises are classified – public houses are turnover-based rated, not by size and zones as ours. It is extremely unfair that our small business, through absolutely no fault of its own, is to be put into the position whereby we will be many thousands of pounds worse off than our competitors before we even open our doors to trade. It leaves a bitter taste in our mouths. We have developed a successful business, helping to bring life to the town centre and employment to Hornsea, only to have bureaucracy thwart us. We have undertaken many routes to resolve the matter; we have spoken with the Valuation Office to appeal this decision, contacted Graham Stuart MP and signed up with a dedicated rates revaluation bureau. Our landlord, Kemp Property has kindly stepped in alongside to help us too. We will fight this tooth and nail because it’s not just about 2017/18 but the future of the premises for many years to come.”

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