Rates review worry for town traders (From Stroud News and Journal)

Rates review worry for town traders

TRADERS in Stroud are bracing themselves for the latest review of business rates which can make or break the smaller shops.

The rates, which are based on the rental value of the building and comparable properties, are updated every five years.

"We don't know exactly what will happen but there will be winners and losers," said commercial property agent Andrew Watton. "That is what tends to happen.

"Since the assessment is based on the value of the property it makes no difference whether you are making oodles of money or making a loss."

The assessment is based on information from 2003 and the new rates will come into effect in the next financial year.

This time lag can created problems, as it did back in 1990 when the data used was from the peak of the boom and two years later traders were feeling the pinch.

"That shouldn't be too much of a problem this time but mistakes do still crop up," said Mr Watton.

"Sometimes there is not enough evidence to make a proper calculation and they get the tone wrong and sometimes they simply get the mathematics wrong.

"While maths is easy to correct, it is harder to persuade them to look again at the tone." Nick Bell, owner of the High Street Chippy, said sole traders like himself dreaded the rates reviews.

"If the rates go up £1,500 you've got to find that money from somewhere or have a £1,500 pay cut," he said.

"If you put your prices up people don't like it and there's no point telling them its because of the rates.

"I expect I'll be alright because I've been here a while but some of the new traders might struggle."

Although they are collected by the district council, business rates are set by the Government and the money goes to a central pot.