In the town of Newton Abbot, Devon, independent traders are voicing deep concerns over rising business rates, which threaten the viability of their operations. The government’s recent budget has brought down the overall level of business rates, but this has coincided with a revaluation of rateable values and the phasing out of Covid-era support measures, leading to significant increases in bills for many businesses.
Kyle Luscombe, owner of the Sweet Dylemma sweet shop, says the £4,500 hike in his rates bill is a major burden in a low-margin industry. “It’s another £4,500 for us – in a low margin area, that’s a lot of sales needed to cover those costs,” he explains.
Hilary Cooling, owner of the Three Wishes shop, is “exceptionally concerned” about the future of her business, which has been in Newton Abbot for 18 years. “It’s clearly going to go up considerably and I think it’s going to close down the high street,” she warns.
The revaluation of rateable values and the tapering of Covid support have hit many businesses hard. David Austin, the third-generation owner of the Austin’s Department Store, says the rates on two of his properties have risen by nearly 25% and 40% respectively.
“It’s a huge disappointment because the business rates were supposed to be reformed with aid for the high street as against out-of-town and online businesses,” he laments.
The Treasury has acknowledged the impact of the revaluation and the end of temporary rates relief, but insists it is “protecting the high street” with a £4.3bn support package. This means most properties seeing increased bills will have their rises capped at 15% or less next year, or £800 for the smallest properties.
The government is also permanently cutting business rates for 750,000 retail, hospitality and leisure properties from next April to help high street businesses. However, for some independent traders in Newton Abbot, these measures may not be enough to offset the mounting pressures they face.