Llandudno traders up in arms about potential tax hike

Oct 15 2009 by David Powell, North Wales Weekly News

SHOPKEEPERS have reacted with horror to a proposed hike in Business Rates and fear the move would deter potential businesses from filling vacant properties.

Retailers face paying hundreds of pounds more in business rates next year thanks to a rise of up to 15%, according to new research.

Welsh Conservatives have learned firms across Wales will be hit with higher bills because of a revaluation which comes into effect next April.

The Government’s Valuation Office Agency (VOA) carries out a revaluation of all rateable values in England and Wales every five years.

The next revaluation is due to come into effect on April 1, 2010. All properties’ rateable value was assessed on April 1, 2008 based on rentable values.

Welsh Conservatives say that on Mostyn Street, Llandudno, businesses will be paying an additional £550,000 which equates to an increase of 15% on their business rates.

Shopkeeper Johnny Taylor, at Craft-Land in Mostyn Street, is dismayed. He said: “People are not going to be happy. A 15% rise would cost me thousands.”

He pays £22,000 over ten months for his shop and £18,000 for his premises next door.

Mr Taylor added: “I’ve just had a monthly bill for £2,225. I don’t even know why I pay business rates. I still have to pay to have waste cardboard to be recycled.”

He believes that a rise would deter new businessmen and women from moving into vacant shops on Mostyn Street.

“I’ve been here for two years and I’ve never seen so many empty shops here. This won’t make more people start up.”

Chris Wise, of Bookwise, on Mostyn Street, was shocked.

He said: “A rise of 15% is ridiculous in the current climate, especially at this end of the street where there are so many small independent stores. How can they justify a 15% rise when there are so many empty shops here? Seven or eight years ago you couldn’t find a vacancy.

Graham Stone, of Vollams newsagents in Gloddaeth Street said: “I’m horrified. We already pay £770 a month. A 15% rise would be about £100 more.”

The research was conducted by the Welsh Conservatives’ economic commission.

Professor Dylan Jones-Evans, who chairs the commission, said raising business rates in the middle of a recession could be disastrous for small firms.

He added: “I am astounded that during a time when every penny counts for the survival of small businesses, the Welsh Assembly Government has done nothing to stop the major increase in business tax bills next year.

“The Assembly Government is responsible for this form of taxation, yet has failed to realise that it is exactly the worst sort of tax during a recession.”

Aberconwy Parliamentary Candidate Guto Bebb said: “This is the biggest tax hike small businesses will have seen for five years.

“This tax hike will have a significant impact on the main shopping street of North Wales. A Welsh Assembly Government spokesman said revaluation wasn’t a money generating exercise.

Some business may pay more, while others will see their rates bill drop.

The Valuation Office Agency said revaluation is fair.

A spokeswoman said: “It does not raise extra business rates. It is designed to redistribute the same total amount amongst ratepayers.”

An estimate of the likely rate liability may be obtained at www.businesslink.gov.uk/estimatemyrates