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The Federation of Small Businesses (FSB) has announced a number of recommendations to help improve high street businesses. This includes a freeze on business rates, increased free town centre parking and safeguards around access to cash and banking, must be put in place to help struggling businesses on the high street. The burden of rising rates bills and ever-increasing rents, coupled with soaring employment costs and pressure from online retailers and out of town shopping centres, are all creating a perfect storm in our town centres.
FSB has set out new recommendations in five key areas, which should be targeted by policymakers to provide an urgent lifeline for the sector in England.
Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said “It’s clear the pressure is mounting. Spiralling business rates and ever-increasing rents are piling on to small retailers, hospitality businesses and others on the high street. The high cost of town centre parking, poor infrastructure, the blight of potholes and the loss of vital banking services are also ramping up the pressure. We know that small business owners are resilient and are used to adapting to market forces. But we want to see Government and local authorities come together to look at real solutions to these issues so that our high streets are not only able to survive, but to thrive.”
“We’ve set out five key areas to be targeted, from tackling ever-increasing business rates bills and simplifying the way bills can be appealed, to calling on local councils to increase the amount of free town centre parking.”
The recommendations include a raft of interventions to the current, outdated business rates system in England. As well as a freeze on rates from April 2019, when the next inflation-linked rise is due, FSB is calling for a £1,000 business rates discount for local shops, cafes, restaurants and pubs, to provide a shot in the arm for high streets.
Government should also look to introduce a type of ‘London weighting’ to Small Business Rate Relief (SBRR) to help struggling firms, by increasing thresholds for intensely pressured areas. The concept could also be expanded to other areas most affected by the last revaluation, and whose temporary relief is also now falling away.
FSB is also calling for the rates relief rule that penalises small business expanding into additional premises, to be abolished. Current rules mean most small firms lose their existing SBRR when they move into a second property. The relief should be changed to a personal threshold for a business owner, so that it can apply to multiple properties owned by one business, below the combined value of £15,000.
Parking remains a huge issue for high streets. High parking charges and a lack of spaces often put off shoppers from visiting town centres, instead favouring out of town centres with free parking. Local authorities must provide more free parking to encourage shoppers back to the high street all year round, making sure any proposed increases to charges are assessed for their impact on town centres.
Other factors at play include cuts to cash machine funding and the loss of thousands of bank branches, impacting on high street footfall all over the country. FSB is calling for the Post Office network to be protected, with every branch providing a reliable, efficient and standardised core of business services.
Mike Cherry added: “Over the long term, a serious look is needed to overhaul the unfair, regressive business rates tax that hits firms before they’ve had the chance to make their first pound of turnover, let alone profit. As the Budget approaches, the Chancellor must provide targeted support to those businesses struggling to keep their heads above water in the face of rates rises. With transitional rate relief now winding down, it’s vital that businesses are given the right support, in the form of a rates freeze from April 2019 and a discount for local shops, pubs and eateries.
“Investing in the road network, fixing potholes quickly and providing more town centre free parking would make a real difference to small firms. We’re not suggesting there’s a quick fix for the high street, but it’s clear something needs to be done. We’re calling on the Government to take control of the situation and, working with local authorities, take the pressure off struggling high street businesses.”
Other recommendations include: