Rochdale’s 90% property tax emphasises need for business rate reform, says local business rate expert

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Paul Turner-Mitchell

News that the former Thornton’s shop on Yorkshire Street has been let has fuelled the argument that business rate reform is essential for towns like Rochdale.

The property has now been let on a 10 year lease but even after the £1,000 retail discount the rates are still £10,809, which equates to a property tax rate of 90% says business rates expert, Paul Turner-Mitchell.

Former Chairman of the High Street Foundation, Mr Turner-Mitchell, who co-authored The Grimsey Review last year and the British Property Federations report ‘Better Rates For Better Business’ released last week, says prime zone A rents in Rochdale have fallen by 40 per cent since properties were last revalued in 2008 which came into force in 2010.

New rateable values will now not come into effect until 2017 which will be based upon market rents in 2015 after the Government decided to postpone the revaluation of business rates.

Mr Turner-Mitchell said: “What is becoming very clear and beginning to dawn on business people particularly in the North is that the postponement of the rating revaluation from 2015 until 2017 will mean businesses in parts of the south east will be subsidised by those less able to afford it such as Rochdale businesses,”

He added that: “There is no justification for hard pressed retailers in Rochdale to be forced to subsidise the business rates of jewellers in Bond Street and tailors in Mayfair – it only seeks to illustrate how out of touch this Government is with life outside of central London”.

A former fish and chip shop on Yorkshire Street, currently empty, is being marketed for rent at just £6,000 per year yet its Rateable Value is a staggering £39,750, something highlighted by the British Property Federation last week.