Mary Portas says that business rates are ‘the Elephant in Rochdale’s sitting room’

According to the Local Data Company the number of shops currently empty within the town centre has increased over the last 4 years up from 19.5% in June 2010 to 21.7 in August 2014 compared to the national average of 13.3% for the same period

Broadcaster and the Government’s retail expert, Mary Portas, dubbed the Queen of Shops, says that business rates are ‘the Elephant in Rochdale’s sitting room’ believing that they are one of the biggest threats to the town centre and says the system is in need of urgent reform.

According to the Local Data Company the number of shops currently empty within the town centre has increased over the last 4 years up from 19.5% in June 2010 to 21.7 in August 2014 compared to the national average of 13.3% for the same period. Property specialists Colliers International say rent for shops in the town have dropped by a massive 40% since 2008.

Mary Portas, who has advised the Government, said: “It was clear to me when I was asked by the coalition government to review the future of our High Streets that there was a lot to do if we were to save these neglected national treasures.

“We had to make being a trader on a high street economically viable; we had to re-imagine our public spaces as places of socialisation, entertainment, and education as well as commercial and retail space.

“We had to make access to our High Streets simple and we had to encourage local inspiring leadership for town teams.

“There were many other things to fix but these were the main issues dragging our High Streets backwards.

“The economic pressure facing small independent businesses on our High Streets – all kinds of businesses, not just shops - is enormous. Amongst other competitive threats they face major multiples, out of town centres and the rise of internet shopping.

“But what they often tell me is that the greatest threat to their survival is business rates – a tax I have long argued is in need of urgent reform.

“If you’re an independent retailer on an average High Street, you probably still stand in the doorway and watch passers by and wonder if it’s all worth it. Unfair taxes, daft parking regimes, unreasonable competition and blinkered local councils probably did for a mate who had an opticians two doors down and you must wonder if you’ll be next."

A former fish and chip shop on Yorkshire Street, currently empty, is being marketed for rent at £6,000 per year yet its Rateable Value is a staggering £39,750, something highlighted by the British Property Federation in their report ‘Better Rates For Better Business’.

Paul Turner-Mitchell, former Chairman of the Rochdale High Street Foundation and a business rates expert who worked with the British Property Federation on their report, said ” The Chancellor must act decisively on Wednesday to tackle the burden of business rates already the highest of any G7 nation OECD country or EU member state. There is no doubt that that the level of tax take is damaging and preventing investment particularly into our town centre, the heartbeat of our community.”

He added: “Exempting the small two thirds of all properties subject to business rates would enhance a move to annual revaluations, ending inflation linked increases which has increased England’s property tax bill by over £5billion during the life of this parliament would be revolutionary creating a system that was fairer, easier to implement and responsive to economic conditions. More importantly all could be done to produce a fiscally neutral outcome.”