Small businesses with a high street presence will now benefit from budget changes that give them a similar deal to on-line businesses on ‘cyberstreet’.This is great news for Kingston small businesses isn’t it?
Perhaps not. This article suggests that when business rates were introduced the effect was to reduce the rents that landlords could charge on the basis that landlords can only charge what the ‘market’ allows.
In other words if a business can only pay £30,000 per annum and the rates are £10,000 the rent can only be £20,000. Now that the rates are zero for many businesses the rents could end up being higher – £30,000!
A business rates reduction looks like a great idea that supports local businesses. However, if rents increase they end up being in the same position as before. The current rate reduction could end up being a political stunt.
Using Kingston Pound to help support local businesses and our local community remains as important as ever.