Jump to content
House Price Crash Forum
Sign in to follow this  
@contradevian

Krustie To Save The High Street

Recommended Posts

http://www.huffingto..._n_4316560.html

Kirstie Allsopp has called for a "rethink" to a controversial tax on shop units known as business rates in order to help local shops and protect the variety of Britain's high streets.

Speaking to the Huffington Post UK, the TV property expert said they should be reformed to "level out the playing field" between small shops and big retailers, who can better handle the tax, which is set to rake in £7 billion this year.

Its always taxes that should be reformed, not the rents in the world of Kirstie.

Edited by aSecureTenant

Share this post


Link to post
Share on other sites

http://www.huffingto..._n_4316560.html

Its always taxes that should be reformed, not the rents in the world of Kirstie.

She has a point. In Wales there is only one band of business rates and everyone pays the same rate, regardless of size or profitability, subject to certain reliefs. In England, I believe there are two.

But in Scotland there is a standard rate, a small business bonus scheme, giving varying rates of discount dependent upon rateable value of the business up to 100% for businesses of rateable value of £10,000 or less. There is also a Large Business Supplement levied on all businesses with a rateable value in excess of £35,000.

Edited by 1929crash

Share this post


Link to post
Share on other sites

That is a poor article from the Huffington Post. I can see errors in the tax description and also quotes one statement from Kirstie that adds nothing!

Share this post


Link to post
Share on other sites

That is a poor article from the Huffington Post. I can see errors in the tax description and also quotes one statement from Kirstie that adds nothing!

It is a poor article and seems to have been scraped from this

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10465610/Kirstie-Allsopp-calls-for-business-rate-cut.html

On average, high streets with thriving small, independent businesses have added £40,000 to nearby house prices in the past decade. Conlumino said the rise in these areas was 17 per cent higher than growth in similar towns with proportionately fewer independent traders

Share this post


Link to post
Share on other sites

She has a point. In Wales there is only one band of business rates and everyone pays the same rate, regardless of size or profitability, subject to certain reliefs. In England, I believe there are two.

But in Scotland there is a standard rate, a small business bonus scheme, giving varying rates of discount dependent upon rateable value of the business up to 100% for businesses of rateable value of £10,000 or less. There is also a Large Business Supplement levied on all businesses with a rateable value in excess of £35,000.

That's not what I'm seeing. I'm currently moving to new premises in Wales and the business rates are dependant on the number of sq ft. There is business rate relief, which I believe is 40% but is it's still a lot to pay out for what feels like nothing. I looked at a place twice the size where the rent was manageable but thy time you added on business rates and the insulting maintenance fee which covered mowing 10 sq ft outside the unit it doubled the cost.

I would have taken a shop in the high street but the rents are ridiculous. It would seem that the people who own these empty shops and units would rather they stayed empty than get someone in paying a reasonable rent. Our town centre is mostly a ghost town with charity shops.

Edited by Battenburg

Share this post


Link to post
Share on other sites

That's not what I'm seeing. I'm currently moving to new premises in Wales and the business rates are dependant on the number of sq ft. There is business rate relief, which I believe is 40% but is it's still a lot to pay out for what feels like nothing. I looked at a place twice the size where the rent was manageable but thy time you added on business rates and the insulting maintenance fee which covered mowing 10 sq ft outside the unit it doubled the cost.

I would have taken a shop in the high street but the rents are ridiculous. It would seem that the people who own these empty shops and units would rather they stayed empty than get someone in paying a reasonable rent. Our town centre is mostly a ghost town with charity shops.

Who owns the shops ?

I know a lot of council own town center shops so cash in on rent and rates.

I contacted the council here about a lock up garage and despite around 40% of their garages being empty they would not negotiate on rents.

Who needs to turn a profit when you take your money off the tax payers.

Share this post


Link to post
Share on other sites

That's not what I'm seeing. I'm currently moving to new premises in Wales and the business rates are dependant on the number of sq ft. There is business rate relief, which I believe is 40% but is it's still a lot to pay out for what feels like nothing. I looked at a place twice the size where the rent was manageable but thy time you added on business rates and the insulting maintenance fee which covered mowing 10 sq ft outside the unit it doubled the cost.

I would have taken a shop in the high street but the rents are ridiculous. It would seem that the people who own these empty shops and units would rather they stayed empty than get someone in paying a reasonable rent. Our town centre is mostly a ghost town with charity shops.

This from BBC Business Section on 14.12.2011 (about Mary Portas and our declining High Streets) may help explain...

Mr Nicol did add, however, that rents for premises were an issue.

He said: "About a year ago I asked a surveyor why shops were being allowed to lie empty and their rents were not being reduced to encourage new occupiers.

"He explained to me that the rental value of a property had a direct link to the capital value of the property.

"Because a lot of these properties are owned by national property companies they do not want to see the capital value of their portfolio fall, especially if they have borrowed money from banks.

"They would rather the properties lay empty than reduce the rents and make some money from them.

"To me that side of capitalism is bonkers."

Edited by juvenal

Share this post


Link to post
Share on other sites

Went to butchers yesterday - it had closed up.

Town is now a Tescos, a dozen charity shops, a Holland and Barretts and a pound shop.

Lots of bank branches though I bet. All next to one another. Nicest places in town.

Share this post


Link to post
Share on other sites

She has a point. In Wales there is only one band of business rates and everyone pays the same rate, regardless of size or profitability, subject to certain reliefs. In England, I believe there are two.

Yes - there is a slightly lower rate for small businesses. Isn't that how most taxes work - the poorest pay a lower rate?

Almost all the reliefs for business rates are focused on small businesses - so while it is a far from perfect tax it does at least make the big corporates pay their fair share as they cannot easily avoid it.

The problem with it of course is that the occupiers/renters pay it - not the owners/rentiers. So you end up with major investment schemes like Crossrail paid for with an extra rate that doesn't target the people who will benefit from the investment in terms of higher rents/property prices but is paid for by the people who will see their rents go up!

Share this post


Link to post
Share on other sites

Rather Ironic to hear Krusty the hypocrite bang on so with her latest band wagon / rebrand.

If she & fellow property porn puppets had not got the sheeple addicted to spending most of their money on high mortgage repayments & rents, they might have some cash left to spend on the high st.

:rolleyes:

She has a point. In Wales there is only one band of business rates and everyone pays the same rate, regardless of size or profitability, subject to certain reliefs. In England, I believe there are two.

But in Scotland there is a standard rate, a small business bonus scheme, giving varying rates of discount dependent upon rateable value of the business up to 100% for businesses of rateable value of £10,000 or less. There is also a Large Business Supplement levied on all businesses with a rateable value in excess of £35,000.

I rent a small light industrial / storage unit of 1000sq ft in Flintshire, N. Wales & pay no bus. rates. Is this not across Wales ?

This from BBC Business Section on 14.12.2011 (about Mary Portas and our declining High Streets) may help explain...

Mr Nicol did add, however, that rents for premises were an issue.

He said: "About a year ago I asked a surveyor why shops were being allowed to lie empty and their rents were not being reduced to encourage new occupiers.

"He explained to me that the rental value of a property had a direct link to the capital value of the property.

"Because a lot of these properties are owned by national property companies they do not want to see the capital value of their portfolio fall, especially if they have borrowed money from banks.

"They would rather the properties lay empty than reduce the rents and make some money from them.

"To me that side of capitalism is bonkers.[/b]"

it's corporatism, not capitalism

Edited by Saving For a Space Ship

Share this post


Link to post
Share on other sites

This from BBC Business Section on 14.12.2011 (about Mary Portas and our declining High Streets) may help explain...

Mr Nicol did add, however, that rents for premises were an issue.

He said: "About a year ago I asked a surveyor why shops were being allowed to lie empty and their rents were not being reduced to encourage new occupiers.

"He explained to me that the rental value of a property had a direct link to the capital value of the property.

"Because a lot of these properties are owned by national property companies they do not want to see the capital value of their portfolio fall, especially if they have borrowed money from banks.

"They would rather the properties lay empty than reduce the rents and make some money from them.

"To me that side of capitalism is bonkers."

Capitalism is being unfairly maligned here. No company can keep large swathes of its resources generating no income indefinitely. ZIRP and forebearance gives zombie outfits the room to do this. Quite why as a society we tolerate the boarding up of high streets indefinitely rather than applying the usual rules- repossession, write downs, distressed sales at reduced prices- is beyond me. Just creates a downward spiral imo.

At the end of the day, surely it's more croney capitalism and ZIRP.

Share this post


Link to post
Share on other sites

She has a point. In Wales there is only one band of business rates and everyone pays the same rate, regardless of size or profitability, subject to certain reliefs. In England, I believe there are two.

But in Scotland there is a standard rate, a small business bonus scheme, giving varying rates of discount dependent upon rateable value of the business up to 100% for businesses of rateable value of £10,000 or less. There is also a Large Business Supplement levied on all businesses with a rateable value in excess of £35,000.

The Scottish scheme sounds very similar to the English scheme, just with the emphasis placed differently; instead of the 'large business supplement' for over £35k,, England has the 'small business rate' for places under £35k, and exempt for under £12k (with some exceptions)

Share this post


Link to post
Share on other sites

Who owns the shops ?

I know a lot of council own town center shops so cash in on rent and rates.

I contacted the council here about a lock up garage and despite around 40% of their garages being empty they would not negotiate on rents.

Who needs to turn a profit when you take your money off the tax payers.

Rent's one thing, but the councils don't get the rates. They collect them, send them straight to national government, who then redistribute them centrally. Otherwise, Tower Hamlets would be the richest authority in the country.

Share this post


Link to post
Share on other sites

That's not what I'm seeing. I'm currently moving to new premises in Wales and the business rates are dependant on the number of sq ft. There is business rate relief, which I believe is 40% but is it's still a lot to pay out for what feels like nothing. I looked at a place twice the size where the rent was manageable but thy time you added on business rates and the insulting maintenance fee which covered mowing 10 sq ft outside the unit it doubled the cost.

I would have taken a shop in the high street but the rents are ridiculous. It would seem that the people who own these empty shops and units would rather they stayed empty than get someone in paying a reasonable rent. Our town centre is mostly a ghost town with charity shops.

I meant you pay the same rate per rateable value (which is influenced by unit area), regardless of size, whereas in Scotland the third band is aimed at large out-of-town shopping units and is higher.

Edited by 1929crash

Share this post


Link to post
Share on other sites

Rent's one thing, but the councils don't get the rates. They collect them, send them straight to national government, who then redistribute them centrally. Otherwise, Tower Hamlets would be the richest authority in the country.

That's how it used to work - but since 1 April local authorities have been able to keep up to half the growth in rates under the new system Eric Pickles has introduced.

However its a bit messy - as refunds due to rating appeals are normally way bigger than the growth due to new builds so many councils end up being worse off.

London also contributes a very big share - just one London borough brings in more rates income (Westminster) than Birmingham, Manchester, Sheffield, Newcastle and Liverpool city councils combined. A north south divide - that really demonstrates it (one London borough brings in more property taxes than the five largest English cities combined outside the capital).

London also brings in more stamp duty than the rest of the UK put together I believe. Last year Westminster generated £70m more alone than the whole of Scotland, Wales and Northern Ireland combined - and that was before the latest bubble got started!

Share this post


Link to post
Share on other sites

This from BBC Business Section on 14.12.2011 (about Mary Portas and our declining High Streets) may help explain...

Mr Nicol did add, however, that rents for premises were an issue.

He said: "About a year ago I asked a surveyor why shops were being allowed to lie empty and their rents were not being reduced to encourage new occupiers.

"He explained to me that the rental value of a property had a direct link to the capital value of the property.

"Because a lot of these properties are owned by national property companies they do not want to see the capital value of their portfolio fall, especially if they have borrowed money from banks.

"They would rather the properties lay empty than reduce the rents and make some money from them.

"To me that side of capitalism is bonkers."

Makes me wonder about the four business units below my block of flats, three are currently empty (was two until a couple of months ago) and those two have been empty for at least three years. I'd of thought some income would be better than done, but if it reflects on their capital value... perhaps it's better for them to add a little to our service charges instead .. hmm..

Share this post


Link to post
Share on other sites

Rather Ironic to hear Krusty the hypocrite bang on so with her latest band wagon / rebrand.

If she & fellow property porn puppets had not got the sheeple addicted to spending most of their money on high mortgage repayments & rents, they might have some cash left to spend on the high st.

:rolleyes:

I rent a small light industrial / storage unit of 1000sq ft in Flintshire, N. Wales & pay no bus. rates. Is this not across Wales ?

it's corporatism, not capitalism

The unit I'm looking at is approx. 1800 sq ft and the business rates are approx. £9200 with a 40ish% discount.

I meant you pay the same rate per rateable value (which is influenced by unit area), regardless of size, whereas in Scotland the third band is aimed at large out-of-town shopping units and is higher.

I see.

Share this post


Link to post
Share on other sites

Went to butchers yesterday - it had closed up.

Town is now a Tescos, a dozen charity shops, a Holland and Barretts and a pound shop.

Nothing wrong with a few local charity shops......I know the answer keep all the shops open 24/7 parking free from midnight then people can spend all their time and money shopping for stuff they may not want or need......

Lower fees/charges, taxes, rents, debt and rates......only then will people who would like to spend more, will spend more, you have to get your priorities right, only spend what you earn and pay the important bills before you can spend what/if anything is left......the wealthier already have all they need, spending anything extra is only more tat or over indulgence/excess to them. ;)

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   203 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.