Some shopkeepers are coming to terms with the possibility of closing their business after the government announce business rate price hikes of 177%. Our merchant cash advance marketing team have been talking to local small business owners who are facing the dramatic rate rises.
Some of those traders are facing increases of up to 177% taking their business rates from a manageable £200 per year to a whopping £6000 per year. It really is a dagger through the heart for many who already battle with local town council’s who implement parking charges to local residents and happily accept tenders for supermarkets keen to see off the small high street counterparts.
— BBC News (UK) (@BBCNews) February 16, 2017
But the issue doesn’t end there. Most of these small businesses also have a rebate structure in place which by all accounts will also be removed from them.
If the price rises do come into play then shopkeepers will be forced to increase their product prices. This will undoubtedly fail as the supermarkets and retail park giant brands will keenly undercut to attract the very same customer. It will be the start of the end for many businesses which is why so many are fighting back.
However it’s not all doom and gloom. It seems that the government are being selective of the areas they are targeting. Many areas will see a drop in business rate tariffs.
‘We have been involved with many local shops in the Great British High Street incentive. We’ve battled through council parking charges. We’ve improved the image of our high street, we’ve increased the footfall and made our high street great again but our concern is we may of increased our premises ‘rateable value’ which could hit us hard.’ and continues ‘by pushing the local house and commercial property prices up through our hard efforts we’ve literally shot ourselves in the foot – sometimes you can’t win!’ Samantha Reynolds.
On the whole it looks like many small businesses will enjoy rate cuts. Any business with a value less than £12,000 won’t have to pay any rates which is great news for many but the hikes in some areas will deliver a killer blow.