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Senior Mp: Business Rates Harm Shops More Than Hitler’S Bombs

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http://www.independent.co.uk/news/business/news/senior-mp-business-rates-harm-shops-more-than-hitlers-bombs-9166887.html

The current business rates system is not fit for purpose and risks destroying the high street unless the Government takes a more hands-on approach to fundamentally overhaul the way the payments are calculated, according to MPs.

A report out today by the influential Business Select Committee said business rates, which are a tax charged on businesses as a proportion of their rent, are putting off future entrepreneurs from opening businesses.

Adrian Bailey, the chairman of the committee, said: “It’s ironic. Many high streets have been around for 700 years. They survived Hitler’s bombs but the Government’s lack of action is doing more damage than Hitler ever managed.”

There are shops in London we can all use, soon only a train ride away.

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High rents and internet competitors not paying tax are killing shops.

Small traders, self employed firms should have reduced business rates......the big companies can afford to pay existing rates.

High street are a much better place to shop when there are more individual original shops......the branded chain style shops sell lots on the internet anyway.....keep our high streets local and different. ;)

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Small traders, self employed firms should have reduced business rates......the big companies can afford to pay existing rates.

High street are a much better place to shop when there are more individual original shops......the branded chain style shops sell lots on the internet anyway.....keep our high streets local and different. ;)

Chains need customers too.

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The problem with business rates is that the valuations are not particularly flexible and it seems, not actually correlated with any meaningful definition of *value*....

For example, on a shopping street near me there is a premise that has been empty for a year.... Yet there has been no reduction in the business rates you'd have to pay if you opened up in there.... Worse, the landlord gets a big discount while it is empty...

So in fact, Business Rates bring small businesses none of the advantages of LVT [yay, LVT!! ;) ] ... and all of the disadvantages...

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“It’s ironic. Many high streets have been around for 700 years. They survived Hitler’s bombs but the Government’s lack of action is doing more damage than Hitler ever managed.”

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High rents and internet competitors not paying tax are killing shops.

Nailed it.

I know a lot of small business owners with shop fronts (being one myself).

People don't complain about rates. They complain about rents.

They've soared whilst foot-fall has plummeted.

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Chains need customers too.

Of course they do, but they would only open in a certain area if they thought the sums added up....most chains have a on-line presence........the costs need to be lowered for the small traders, they have the smallest margins and greatest percentage costs to profits, any debt they pay a higher rate of interest, they also can't buy in bulk like the big boys.....like everything, economies of scale.....anyway many of the boarded up units start with the small units, even the big stores move out when the high street looks dowdy, dirty, and desolate.....who ends up losing then, the local councils, even the car parks become empty. ;)

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Nailed it.

I know a lot of small business owners with shop fronts (being one myself).

People don't complain about rates. They complain about rents.

They've soared whilst foot-fall has plummeted.

That is the risk, reduce the rates and the landlord will up the rents.....could not the business rent tribunal help? ;)

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Not in this article but I read the committee also was digging around the Portas review. Looks to have been buried and total waste of time.

They postponed the revaluations because rising values would mean the tax would jump and they would just slap in a transitional relief system like before to delay the rises. The collection goes back up to central ( in recent years the law on retention has changed). It is assessed but for the most part council officers are clueless and there are mass backlogs at the VOA. Also loads of companies living off the back like the ppi claims

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god these guys really are sharp,aren't they?

how long did it take for them to figure that out?

..now how long will it take for them to realise that THEY ARE PART OF THE PROBLEM.

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Business rates have been around for a long time and although they are a pain in the neck and it is a tax as the business gets practically nothing in the way of services.

The problem is that the internet companies and in particular the very big ones are not paying their fair share of tax.

The internet has grown very quickly, much faster than the wheels of Government turn and the Tax system has some catching up to do. If it does not then the Government is going to end up in a situation where:

High street stops employing people who pay tax

Shops empty paying no Business Rates

Internet retailers paying hardly any tax and using international methods to reduce taxes and payroll costs

Government paying associated unemployment benefits

Nett result is that the Goverments finances are going to look very bad if they don't act quickly. I am not saying they should bail out high street retailers who are going to find it tough competing with the efficient on-line way of trading but I am saying they have to find a way of taxing the new economy (or they will have to reduce the size of Government :D ))

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[url=http://www.independent.co.uk/news/business/news/senior-mp-business-rates-harm-shops-more-than-hitlers-bombs-9166887.html]http://www.independent.co.uk

The current business rates system is not fit for purpose and risks destroying the high street....

Got to love the way they say risk for something that has already happened. The High Street was destroyed long ago. They are all boarded up, thanks to greedy business rates and landlords. It was the same with Blair's police state. We were the most spied upon country in the world, the media was pure propaganda, detention without trial,assassinations in public and so on. Then we started hearing about 'the risk of sleepwalking into a police state'.

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That is the risk, reduce the rates and the landlord will up the rents.....could not the business rent tribunal help? ;)

I'd say about 15-25‰ of the local shops are already unrented and empty because people can't afford the rents.

Most of the small businesses actually qualify for small business rate relief so the rates themselves are often irrelevant and not a factor.

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I'd say about 15-25‰ of the local shops are already unrented and empty because people can't afford the rents.

Most of the small businesses actually qualify for small business rate relief so the rates themselves are often irrelevant and not a factor.

Start ups or small businesses?......keeping things the same will not revive the high streets in high streets with a large percentage of unrented units.......people will only shop there if prices are competitive, high rents, rates and parking without good reasons that will make people stop and shop there will not bring life back to a dying area. ;)

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