Despite the state of vulnerability that most small and medium-sized businesses have found themselves, they are receiving little support from local authorities. Despite the important role they play in maintaining a healthy economy, SMEs are being ignored by councils, who aren’t seeing the need for a rate decrease. Business rates are hurting small businesses, with the extra costs adding pressure to those who are already battling low profits and low consumer confidence. If the UK is to protect these lifebloods of the economy, local authorities need to do more to keep them around.
According to new analysis by the Altus Group consultancy, there were only £21 million of reductions in this financial year, with an increasingly limited frequency. Altus Group was warned that town centres could fail if councils do not start using their powers to make a change. Rates have skyrocketed in recent years, with department stores hit with an average increase of nearly £151,000 in the past two years, while small shops have seen rates climb by £9,623.
If businesses are to move past recent retail crises and charge towards prosperity, operating costs either need to be reduced or business finances need to become better equipped to combat them. While think-tanks and retailers rally around a rates decrease, businesses can also help themselves. At the Credit Protection Association, our debt recovery services recover residual debt and chase down unpaid invoices, awarding our Members with extra cash and renewed financial stability. All our Members need to do is get in touch.
Sam Dumitriu, of the Adam Smith Institute, a think-tank, said: ‘Councils would rather prioritise their chief executives’ salaries over lessening the burden on businesses. There needs to be quite radical reform of rates to support businesses.’
Mike Cherry, chairman of the Federation of Small Businesses, said: ‘Local authorities must get to grips with the dire situation currently sweeping the high street and start backing hard-working retailers being hit hard by crippling rates bills.’
The Daily Mail’s Save Our High Streets campaign is calling for business rates to be reformed, car parking charges to be slashed and huge foreign technology companies such as Amazon to be fairly taxed.