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Call For Urgent Business Rates Review As More Retailers Face Collapse

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http://www.guardian.co.uk/business/2013/jun/26/call-business-rates-review-retailers-collapse

The government is being urged to bring forward a review of business rates as a fresh wave of retailers face collapse, putting at least 2,000 jobs at risk.

..

Helen Dickinson, director general of the British Retail Consortium (BRC), the industry trade association, said the government needed to speed up action to tackle high costs for shop-based retailers, particularly business rates, as businesses struggled to survive. Vince Cable, the business secretary, has promised to review the operating climate for retailers once the UK economy has stabilised, but Dickinson said this review should and could be urgently brought forward. She said the Future High Streets Forum, an industry-led group which is advising the government on policies to support the regeneration of town centres, could be used to lead a rates review.

The BRC wants a new system to calculate rate rises, which are currently guided by the retail price index of inflation in September. It has called for a one-off freeze in business rates this year rather than the planned 2.6% rise.

"Business rates continue to be one of the major decision making points behind whether or not a retailer feels they can continue their business," Dickinson said.

Retailers saw business rates rise 4.6% in 2011 and 5.6% in 2012 amid tough trading conditions on the high street. The economic downturn has combined with a huge switch in shopper behaviour towards buying goods online to bring down many well-known high street names.

Amazing not one mention of rents that only ever go up. It's all the fault of business rates, looks like rents are affordable.

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We can't have rent controls though, we should let the market decide those, and remove government landlord subsidies and tax breaks.

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^She discovered that bringing about change would mean all the elite land owners would have to slit their throats, that would cause Armageddon, and bring about world war 3.

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It's spelled out in the Financial Stability Report- 1/3 of commercial real estate lending is subject to some form of forbearance, but lenders will not pull the plug since it could trigger bigger losses than the current balance sheet suggests.

The landlords are silly, but it's the banks who ought to be having the pressure applied to start closing out on these loans and fessing up on their real position. t'll have to happen at some point regardless.

Edited by cheeznbreed

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http://www.guardian.co.uk/business/2013/jun/26/call-business-rates-review-retailers-collapse

Amazing not one mention of rents that only ever go up. It's all the fault of business rates, looks like rents are affordable.

Well... Business rates is linked to the rent at around 45% of the rent, lagged by up to 5 years (VOA do the valuation once every 5 years).

In fact, business rates is part of the rent, business rates down, rent will go up to make up the slack in a few years time.

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Guest eight

What happened to that Portas woman? Wasn't she given a load of dosh to sort this all out?

Some crazy goings on here in Darlington.

THE manager of Darlington’s business improvement district has defended enforcement action against a number of shops and cafes in the town who have not paid the annual levy.

Bailiffs were called to a number of businesses in Darlington town centre this week to claim the money owed to Distinct Darlington, the company that operates the business improvement district (Bid).

Alex Hirst, the Bid manager, said it was unfortunate that bailiffs had to be brought in, but that the Bid had to collect all levies in order to continue its work to improve the town centre.

The levy was introduced when the Bid was formed last July, but some traders have refused to pay up on the grounds that they did not vote for the scheme and cannot afford it.

The annual levy, charged at 1.5 per cent of a property's rateable value, funds initiatives such as the town centre rangers.

Liability orders were served on 45 businesses earlier this year by magistrates, who ruled that the Bid was set up lawfully, despite the protestations of the owners.

Pay up or else.

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What on earth are the 'Town Centre Rangers' in Darlington?

Probably little Nazis like these pseudo-police uniformed specimens:

ccrt-1_500x249.jpg

I mean, can you imagine anything this cool being allowed in a public square in the UK?

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It's spelled out in the Financial Stability Report- 1/3 of commercial real estate lending is subject to some form of forbearance, but lenders will not pull the plug since it could trigger bigger losses than the current balance sheet suggests.

The landlords are silly, but it's the banks who ought to be having the pressure applied to start closing out on these loans and fessing up on their real position. t'll have to happen at some point regardless.

Yes. It it sustains the asset price and down the line rents. The Boe don't want this unravelling as would unlesh a deflation. We're just left with ever increasing number of empty shops.

Edited by Ash4781

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Guest eight

What on earth are the 'Town Centre Rangers' in Darlington?

Meet the team!

Your BID team also includes the Darlington Town Centre Rangers who make sure the town centre is a cleaner, safer and more welcoming environment for visitors, shoppers and businesses. Feel free to stop any of the Darlington Town Centre Rangers to chat when you see them on the street. They will always be happy to answer any of your questions.

2304726.jpg?type=articlePortrait

"I'm happy because I'm in Darlington!"

Edited by eight

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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