Business rate reduction set to be approved at Council Cabinet meeting

Councillor Richard Farnell

A proposal to reduce business rates is set to go before the council’s cabinet next Monday (15 December).

The proposed pilot scheme in selected areas of Rochdale town centre will give new businesses moving into an empty shop an 80 per cent discount on their business rates for the first year, with a further 50 per cent cut in the second year.

Councillor Richard Farnell, Leader of Rochdale Council, said: “This is a fantastic scheme which will be a huge boost to our high street and major step forward in reviving our town centre.

“Business rates are one of the single biggest obstacles facing new businesses and a key reason why many ultimately fail. Nationally over 31,000 independent shops failed in 2013 alone.

“We cannot reverse the decline on our high street - which is mirrored in towns up and down the country - without dealing with this critical issue. Big reductions in business rates will hopefully see new shops open, help bring more shoppers and breathe new life into the town centre.”

The scheme will cover 23 units which are currently empty on Yorkshire Street, South Parade, The Walk and Baillie Street. It is aimed at tackling the high vacancy rate, which is currently 13.5 per cent nationally and 22.7 per cent in Rochdale town centre.

Councillor Farnell added: “This pilot scheme will cost £100,000 – but it will be money well spent. Investing in our town centre is a big priority for the council. We are also talking to the owners of empty shops to persuade them to reduce rents which will be another huge incentive for retailers to open up new shops.”

Rochdale MP Simon Danczuk has wecolmed the proposal, he said: “I’m really pleased to see the Council taking decisive action on this issue because business rates are far too high in Rochdale and they’re acting as a barrier to investment, deterring entrepreneurs from setting up a business on our high street. This is a smarter approach to regeneration and it will act as a very strong incentive to encourage businesses to invest in our high street.”

He added that because the Government had cancelled a long overdue revaluation of business rates, traders in the town were paying artificially high rates and it was holding the town back.

“The Government has made a real mess of business rates in this Parliament,” he said. “When you have a fish’n’chip shop on Yorkshire Street paying £6,000 in rent and hit by a £19,000 business rates bill then you know this tax has lost touch with economic reality.”

New businesses can apply to be considered under the scheme, which will start in April 2015. The council is hoping that the cut in business rates will encourage a wider variety of quality shops and independent traders to open in the town centre.