Independent shopkeepers are calling on Mayor Andy Burnham to support their businesses through a comprehensive reform of business rates. The Mayor of Greater Manchester has been urged to overhaul the system, which shopkeepers claim is the 'most unfair tax in Britain'.
According to the shopkeepers, the current business rate system severely hampers their ability to invest in their businesses and maintain the quality of their premises. This, in turn, affects the overall appearance and attractiveness of high streets. The Federation of Small Businesses estimates that small retailers pay around 30% of their business rates as a fixed charge, regardless of their property value.
Shopkeepers are pointing out that business rates can be a significant proportion of their expenses, with some reportedly paying up to 20% of their turnover in rates alone. The pressure this puts on their finances makes it challenging to invest in their businesses, maintain their premises, and provide competitive pricing for customers.
The call for reform comes as the UK's shopkeepers continue to face significant challenges. Data from property services company, Altus Group, reveals that retail property values have declined by 3.8% over the past year. This decline has resulted in higher business rates for many shopkeepers, exacerbating their financial struggles.
The implications of this situation are far-reaching. If business rates continue to be a significant burden for shopkeepers, it could lead to further decline in high street footfall and increased competition for remaining businesses. This, in turn, could negatively impact the local economy and jobs.
Mayor Burnham is yet to respond to the shopkeepers' call for reform. However, the Greater Manchester Combined Authority has committed to exploring options for reducing business rates for small businesses.