St Albans trader speaks out about imminent business rate hike (From St Albans & Harpenden Review)

St Albans trader speaks out about imminent business rate hike

9:45am Tuesday 26th January 2010 in

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SMALL businesses in St Albans, already struggling following the recent recession, are bracing themselves for “crippling” rate increases in April.

Shop owners in Holywell Hill fear the rise, which is reviewed by the Government every five years, could spell the end for businesses fighting to keep their heads above water.

Paul Hargreaves, owner of Mail Boxes Etc, says that although the rent he pays has decreased in the last few years the rates are subsequently going to increase in a few months time.

The 48-year-old says the 2010 revaluation system is unfair because it is based on property values and trading conditions at the peak of the boom in April 2008 – but it does not reflect the dismal situation faced by traders today. Mr Hargreaves calculates that the value of his property has increased by 43 per cent.

He told the Review: “We don’t even get our rubbish collected for the amount we pay.

“It is totally unacceptable because in real terms the rent has come down so the rate should be down 20 per cent not up 40 per cent.

“At the moment I pay £700 a month but in April who knows how much I will have to pay. No doubt it will go up because of the mere fact the rateable value has increased by 43 per cent.

“Nobody knows what multiplier will be used to collect the actual business rate.

“But the horrible thing is I know it definitely will go up, it could be crippling. The valuation it has done seems over the top.

“This is a very anxious time for us. We have struggled through the recession and could be hit with an enormous rate increase.

“The effects from April could be devastating.” Property’s bills across the country will be calculated by local councils using a system set by the Government where its rateable value is multiplied against the national business rate – expected to be 41.4 pence in England this year.

Although this is 15 pence lower than last year, the only traders who will be better off are those whose rateable value has increased by less than 15 per cent.

Have you had your valuation through? How much has your rateable value increased?