Chiswick's Local Businesses 'Under Threat' From Massive Rates Hike

Could increases mean the 'death knell' for our struggling independent traders

Chiswick businesses are up in arms over forthcoming hikes in their rates of up to 50%. There are fears it could lead to further closures of independent shops and cafes, and the erosion of the area's proud tradition of individuality.

And in what appears to be a 'double whammy' for some, cafes and shops who have street tables and chairs, or outdoor advertising hoardings, face licence fee increases from Hounslow Council of over 25% .

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The re-evaluation of business rates, after a seven-year gap, is causing anger and concern locally and has led to a robust discussion on the chiswickw4 forum . Rates are the third biggest outgoing or traders after rent and staff costs, both of which have increased in recent years.

Several locals businesses, awaiting their rates re-evaluation, due in April, have used an online calculator and been shocked to find predicted increases of up 50%. Larger stores, such as Waitrose on CHR face a rates increase from £265,000 per annum to £400,000. But many small business facing an increase of £10,000 ot £15,000 say it will be almost impossible to make sufficient profits to cover increased costs.

One local business man told chiswickw4.com; "I have had a 46% increase in valuation, as I imagine that most have, but I do not know. I have written to the VOA asking for reasons why and asking them again to redefine my property. I was told I’d need to wait 8 weeks, which is not up yet, but I’m not hopeful of a sensible response or indeed any effort to look further into my case.

"We have been here for just over 2 years, rent (29%) and rates (12%) are by far our greatest expenses and it is little wonder that we are yet to make a profit. I personally have drawn no wage from the business in over 12 months. If my Business Rates rise 46% like my valuation I will need to consider closing as my wife’s salary cannot support all of our household expenses and provide cash input to further prop up the business.

"Now it may seem that we are a failing business doing little well and so ‘survival of the fittest’, but this is not the case, indeed all of our ‘signals’ are good and we are month by month making more money, we are growing and have a loyal customer base but our expenses are just huge, likely very small in comparison to others but huge for us."

Mike Moran of Top Hat dry cleaners, which celebrates its 50th year as a family business, commented: "My business rates valuation was gone from £21.5k to £34.5k, rent as of 2015 was and is £21.5k. All this means is that I will waste time and money fighting to get it adjusted and I mean "I" as I don't have a property department.

"We have a problem country wide and particularly in the south east with high rents, the trend is for fewer people buying from the high street and if people are buying online they aren't buying from shops and therefore foot fall will drop for the service industry too.

"IMHO rents will need to drop or remain the same over the next 10 to 15 years as they are unaffordable.".

"I feel like I'm working for nothing", said one cafe owner in Devonshire Road, "I have to work so hard before I can actually make any sort of profit.".

Business rates are supposed to be readjusted every five years when the underlying value of properties is assessed for their 'rateable value' but following a government postponement, it is now seven years since rates were set. Since the last valuation, in 2008, property values in Chiswick, as in most areas of London, have increased substantially and this is being reflected in the forthcoming rates increases.

The business rate broadly represents the yearly rent - the rentable value - for which the property could be let. The changes will be introduced with a cap on how much bills can rise or fall over the next few years, but few expect this to cushion the transition and the situation has been described by one property agent as "the largest changes to business rates in a generation."

Businesses can appeal- those with a rateable value between £12,000 and £15,000 get tapered relief and there are caps in place, but most people say this is timeconsuming and they are already overworked. Charities and sports clubs, empty properties and businesses in enterprise zones can also apply for rate relief.

This is of little comfort to the local shops and traders in Chiswick who are now fearing for their future, against growing competition from online shopping and large shopping centres.

January 14, 2017