BUSINESS growth in Luton and Dunstable is being stifled by high rates bills.
That’s the warning from a national advice service that says 608 firms in Luton are waiting on the result of appeals.
This, says CVS, could mean that £3,439,022 of savings could be due back to local firms.
Mark Rigby, chief executive of CVS, said: “There are 608 rate appeals sat with the Valuation Office Agency from businesses in Luton.
“This could mean that £3,439,022 of savings is due back to local businesses.”
And, from April 1, CVS said business rates rose by an average of 5.77 per cent – the biggest increase in 20 years
Mr Rigby added: “This rise in rates also means that the average retail space can now expect a yearly rates bill in excess of £10,000. This figure is to be paid on top of rent and wages. Imagine the amount of trade your local newsagent would have to do to cover that cost.
“Exorbitant business rates undermine the profitability of companies in Luton and detract from their capacity to invest and grow. At best this impacts on their ability to create new jobs and at worst forces companies to close, contributing to further unemployment and stifling the UK economy.”
Annette White, of PC Help Centre in High Street South, Dunstable, said many small/new businesses have found it very difficult over the last year or so to maintain payments and even stay in business
She said: “I think it is fundamental that business rates are looked at.”
But it is worth contacting councils which may be able to help by deferring payments.
Business rates often represent the third biggest overhead after rent and wages and the fear is that increases will see a number of already struggling businesses go to the wall.
The appeals process itself can take up to 18 months to process, says CVS, too slow for some.
Damian Cummins of the Luton and South Beds branch of the Federation of Small Businesses said: “When is the government going to realise that small businesses are the hub of the economy?
“Business rates are stifling small businesses. If they want increased unemployment and more bankrupts carry on, if they want to stimulate growth, stop, look and listen – they need a business Green Cross Code!”
Tax specialist Dave Masterson, of TaxAssist in High Street North, Dunstable, said local businesses should make sure they get full rate relief entitlement. He said: “Charities and amateur sports clubs, for example, could have their rate bills reduced by 80 per cent or more. Small businesses should ensure they are receiving everything they are entitled to.”