High Street Crisis: Small Businesses Face 'Crazy' Business Rate Hikes

Independent Businesses Struggle Under Increased Financial Pressure

In Cheltenham’s Montpelier area, small businesses are grappling with dramatic increases in business rates that have skyrocketed post-pandemic. Many independent and family-run retailers are facing rates that have more than doubled, posing a serious threat to their viability.

Stark Increases

The financial burden of these new rates is heavily felt, with owners like David Burgess of Contour Kitchens reporting an increase from £3,837 last year to £11,452 this year. He likened the hefty hike to a ‘kick in the teeth,’ noting that such expenses are making it exceedingly difficult to sustain operations. Similarly, Eleanor Wardle, owner of Paragon Gallery, has seen her business rates soar from £3,385 to over £10,000.

Long-Term Implications

Richard Dare, who runs the men’s clothing store James of Montpelier, is facing a rate jump from £8,188 to a staggering £21,145. He expressed concerns about how to manage such financial strains, stating, “Where do you get that money from?” Decreased cash flow means he can no longer hire additional staff or reinvest in his business, which could ultimately harm the local retail environment.

Government Promises Reform

As business owners voice their frustrations, John Webber, a business rates expert, highlighted the unprecedented scale of these increases. He indicated that the government has acknowledged that current relief measures are unsustainable and has promised to implement permanently lower rates designed to help small businesses starting April next year. However, there is palpable anxiety among business owners about whether they will survive the next 12 months until these reforms take effect.

Conclusion

The situation on Cheltenham’s high street reflects a broader crisis affecting small retailers across the UK, with many uncertain about their futures unless substantial changes to business rates occur soon.