South West voices raise concerns
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There’s considerable debate, if not disquiet, amongst Devon councillors over the question of how the second-home council tax should be spent – and at the recent South Hams’ full council meeting, this erupted into anger over the county council’s housing cash ‘betrayal’.
There are similar voices being raised over struggling high streets needing reform for a ‘fighting chance’ – and this follows on from years of calls for a fair system of business rates.
Sarah Dyke, the Liberal Democrat MP for Glastonbury and Somerton, used a parliamentary debate on high street regeneration to call for business rates to be reformed, arguing it would encourage firms to fill empty shops in Wincanton town centre within her constituency. The government said it would honour its manifesto commitment to review business rates, with further details being anticipated following the budget on October 30.
Whilst Labour has just reiterated its resolve to reform the ‘outdated’ business rates system, the hospitality industry says any deep business rates reform is not possible by April next year. Their trade body is warning that hospitality is ‘facing a £1b business rates cliff-edge’ without reform:
If business rates relief is not extended beyond next April, UKHospitality has warned… many venues would be forced to close due to their bills rising tens of thousands of pounds.
Tim Hassell, who runs the Thurlestone hotel in Devon, would have to find £110,000 if relief ended in April. He said: “In a year when we have seen a drop in demand and extra costs on almost everything, we have seen profits drop to break-even point. A huge rise in our business rates bill would have a massive impact, particularly on our investment plans. The current business rates system unfairly penalises property-based businesses like ours. It’s in dire need of reform.”
Meanwhile, the real estate services company Colliers has launched its Ten Point Business Rates Manifesto for growth – What the new government must do to reform Business Rates, whilst the CBI has put together its own path to business rates reform.
We’ll see what the Budget later this month has to say…
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