Henley retailers criticise business rate hike

RETAILERS in Henley are set to collectively appeal a 20 per cent valuation increase on properties which will see them faced with higher business rates.

The increase was part of the recent revaluation of businesses, which was published by the Valuation Office Agency in December and is set to take effect in April.

This will see the rateable value of commercial properties increase by an average of 19.4 per cent across England. 

The agency said the increase is a result of lower valuations during the coronavirus pandemic.

Lorraine Hillier, who runs Hot Gossip in Reading Road, faces an increase of 20 per cent in rateable value.

The increase would bring her business above the 100 per cent rate exemption threshold, which is set at £12,000, meaning she will now be eligible to pay rates.

Miss Hillier said businesses outside of the town centre are already disadvantaged by lower footfall and the rates would be another expense she “just couldn’t afford”.

She said: “It will impact, some will suffer more but I don’t understand how they are increasing it so much at this part of the town. I try to keep my prices affordable and I don’t want to have to raise any prices again because people have enough to pay out.

“I’m at an age where I shouldn’t be having to work the hours I do but I have too — there is no choice because the cost of running things is so hard. It’s just another expense that I can’t afford really.”

In the last budget, the Treasury announced a reduced multiplier for the calculation of rates but said that the 40 per cent discount for retail, hospitality and leisure firms which was implemented during the pandemic would come to an end. This has been replaced by a transitional relief scheme which will be phased out in three years and was brought in to reduce the impact of withdrawing pandemic-era support.

The supporting small business scheme, which caps the amount business rate bills can be raised, will also be extended to retail, hospitality and leisure firms which were previously eligible for the discount.

It has been suggested that the government may provide extra support for pubs facing increases in business bill rates. But she said if this does go ahead then the same relief should be offered to all hospitality venues.

Miss Hillier said that if there hasn’t been a U-turn on the proposed increases by April, other retailers in Reading Road will join up to appeal.

Nir Dhumgel, 23, who manages Henley Mini Market in Reading Road, is also set for a 20 per cent increase in April.

She said years of declining business meant that an increase in rates will hit retailers and businesses on the street hard.

“It will definitely impact us,” she said. “People are very careful with money these days now because everything is so expensive. Everything is going up and up, but business is going down.” Ms Dhumgel said the business, which also operates Regatta Wines on the opposite side of Reading Road, has reduced operating hours at the other site, due to slow business.

She said: “There should be some relief, we used to get relief but now they have wiped that as well.  It’s going to be difficult.”

Louisa Bisson owns the retail space which her furniture business, Brook House Interiors in Reading Road, occupied until last year.

She said: “Having higher business rates, it’s harder to attract a tenant. I have worked out that the actual rates payable, eventually it will be something like a 56 per cent increase just on our little street. 

“That’s then suddenly £4,000 a year extra — it’s make or break for some businesses.”

On January 7, Prime Minister Sir Keir Starmer said: “During covid the rates went down and that was coming to an end and that is why we put in place interim relief as we move to the new rates.

“We are continuing to work with and talk to the sector on that support and what further support and action we can take.”