Retailers meet Alun Cairns MP to voice concerns about business rates

Cooke & Arkwright hold presentation to provide advice

16 February 2017

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Worried retailers and small business owners from Cowbridge, Llantwit Major and Barry attended a meeting on the 2017 Business Rate Revaluation at The Bear Hotel in Cowbridge on 13th February. The event was held by the Rt Hon Alun Cairns MP, Secretary of State for Wales to discuss the ongoing issue of changing business rates. Jane Shankland, Associate Director of Rating at Cooke & Arkwright, conducted a presentation to provide advice on how businesses can appeal the new rateable values and keep rates as low as possible. Many businesses across the Vale are bracing themselves to be hit by unanticipated and painful increases in their rate burden, and attendees of the meeting were keen to express their concern.

Alun Cairns said, “The effect of the new rate will be partly mitigated in the short term by a transitional rate relief from the Welsh Government which will stagger the increase over a longer period of time. Although this is better than nothing, it falls far short of what is needed to protect our high streets. As the name implies, it exists to ease the transition to rates that are too high for many of our most valued businesses to survive. What is needed is a permanently enhanced small business rate relief, similar to that which will be used in England by the UK Government from April onwards, whereby rates will be abolished for all businesses with a rateable value below £12,000 and tapered up from there. The qualifying band for full relief in Wales is much lower.”

Jane Shankland commented, “The increases for many small businesses are clearly much larger than expected. Successful challenges will be based on the prosecution of appeals by suitably qualified business rate practitioners. Rental evidence will need to be properly analysed to establish the accuracy of the new assessments in order to conduct meaningful discussions with the Valuation Office Agency. We believe there is a case for businesses to take concerted action, as isolated and sporadic appeal activity will yield the least success.”

She added, “In December the Welsh Government announced an additional £10m to help some high street retailers across Wales who are facing substantial increases in their rates. The scheme is due to be in place by 1st April but details on how it will operate are currently being determined.”

I have worked with Jeremy Symons over the past three years successfully leasing and buying property in support of my business. I continue to be very pleased with his knowledge of the market and expertise. Our relationship over this time has resulted in acquiring 20,000 sq ft at Capital Business Park in Cardiff, leasing 11,000 sq ft at Southpoint, and subsequently leasing an initial 42,000 sq ft at Parc Bedwas, followed by a succession of expansions of a further 11,000 and then 47,000 sq ft, enabling us to centralise all of our operations at Parc Bedwas in a single 100,000 sq ft facility. The acquisitions were completed at the perfect time for tenant purposes and the rent fixed throughout the term at very economical rates. A job well done.

Bob James, Aerfin