MARKET traders at Warrington face the possibility of a 79 per cent increase in the business rates they pay.
The potential impact on stallholders – and the increase in bureaucracy and administration for the borough council – could be substantial.
Town Hall bosses are in touch with other authorities operating six day-a-week indoor markets which will face similar increases to try and co-ordinate a collective objection.
The potential rise in rates payable arises from a changed interpretation of how National Non Domestic Rates are calculated.
Reason for this is that the Valuation Office has introduced individual assessments of stalls, rather than one overall assessment for the market.
Peter Taylor, Warrington’s assistant director for regeneration and development, in a report to the council’s economy and resources overview committee, says the development is “a significant issue affecting the future financial position of the retail market.”
A specialist tax advisor is reviewing the Valuation Office assessment and appeals are being lodged against the decision.
If it is not changed, negotiations over the phasing-in of any increase will take place.
Market traders face 79pc rate rise
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Gary Skentelbery
Experienced journalist for more than 40 years. Managing Director of magazine publishing group with three in-house titles and on-line daily newspaper for Warrington. Experienced writer, photographer, PR consultant and media expert having written for local, regional and national newspapers. Specialties: PR, media, social networking, photographer, networking, advertising, sales, media crisis management. Chair of Warrington Healthwatch Director Warrington Chamber of Commerce Patron Tim Parry Johnathan Ball Foundation for Peace. Trustee Warrington Disability Partnership. Former Chairman of Warrington Town FC.
11 Comments
So, we can look forward to even fewer stalls being occupied than at present!
Exactly how does this government think this will help small businesses?
I believe the Valuation Office act indepently on this sort of issue, although I am sure the government could, if they were aware of it, put a stop to it. Good to see the council is opposing it. But if they fail, they could help by reducing stall rents by the same amount. They are ridiculously high at present. You can rent a shop in some parts of town for less than a stall on the market.
Isn’t the Valuation Office a government agency? But yes, if the council are setting the rents for the stalls, they could do something there. that would cost them though, so I guess they don’t like it.
Without knowing what the current levels are there’s no way for anyone to judge whether the rise is justified or not. It COULD be a ridiculous increase, or it COULD be that the stallholders have been getting an almost free ride for years – compared to other retail premises – and that this meerly corrects that.
I thought that whole area of Warrington was going to be redeveloped, so the Market will close anyway. Maybe this is just a way of hastening its demise. Great pity, markets can be really interesting places and often offer great value for money.
The valuation system relating to business premises was changed and came into force in 2010 so why are VOA they changing it again ?? After the change the markets valuation went up by £38k. The current rateable value (for business rates) of the market/premises was set at £438,000 by the valuation office as of 1st April 2010 and runs until 31 March 2015.
This rateable value is then used by the local authority to calculate the level of business rates applicable and in the case of Warrington market this would be around £180,000 before any transitional arrangements or reliefs are taken into account. I have no idea how many stalls there are in the market so cant guess what each would currently pay IF it was currently simply split between them. I presume most currenly pay whatever charge to rates through their stall rental payment so the council will have to reduce their rent by whatever amount they currently pay if they are going to be be billed individually for their business rates… otherwise they will be paying twice. Good to see the council trying to help them though and I would imagine there will be a lot of appeals or closed stalls once the new valuations start ariving on the stallholders tables 🙂 Shame as the market is half dead already it used to be so good. One question though… why is it expected to rise by 79% when other markets are saying theirs will rise by around 35 % ?
Apparently, it’s not that the system is being changed. It’s that indoor markets across the country have previously been valued in inconsistent ways; some valued overall, some valued individually. So what’s happening here is bringing everything into line so all markets are done the same way countrywide. And the appropriate way, as dictated by rating law as it stands, is a stallholder who has exclusive use of their stall, should have their stall valued on the same basis as any other retail premises. That is, individually, based on its rental value.
As others have alluded to, what the rates are going to be is dependant on how much the council will take off the rent. And also whether the stallholders will be getting small business rates relief. With so many unknowns, I’d take this 79% with a very large pinch of salt.
This is the culmination of a process started way back in 2006 by the previous Liebour Government….. There is never any help for business….. if there was we would have more successful small businesses who are’nt burdened by overbearing tax demands
There wil be no stall holders if this is what they have to pay,as you know there are not that many there now. They should be droping the rate to help my traders move in. But this is Warrington Council for you. Give the top man of the council a pay cut he can afford it.
Our Market is already on its last legs with more and more empty spaces. Suggest we close the Market – nobody would miss it. How is that Towns like Bury have a very successful indoor and outdoor market right next to the indoor and outdoor shopping areas. Perhaps if we contacted them the Council could learn how!