Business leaders in the East are warning that high business rates are crippling small and independent firms, forcing them to leave the high street.
Empty units have become a common sight across East Anglia’s towns and cities.
Figures released last week revealed that more than a quarter of shops in Lowestoft are currently empty - almost double the national vacancy rate.
And according to the region’s retail experts, high business rates are the number one reason our high streets are struggling.
Rob Bradley, manager of Castle Quarter in Norwich, said: “Because rates are so high, they can easily take up the majority of a trader’s budget, leaving insufficient funds to pay other costs such as rent and/or service charges.
“This can force small businesses to make difficult decisions and to walk away from premises.”
Henry Pettitt, partner at Stephenson Smart Accountants, which has offices in King's Lynn and Gorleston, agreed, and added: “The expense of business rates is an additional financial burden for many of our clients, especially those in retail competing against online outlets.
“A fairer, more accurate and better assessed approach to business rates would help many local businesses to have lower outgoings and they could then use that profit to invest in or expand their enterprises.”
But despite hopes that the government would extend its business rates relief scheme, which offers eligible companies up to 75 percent off their annual bills, no such announcement was made in the Spring Budget.
Mr Bradley warned that ignoring the sector's calls would change the face of the region's urban hubs if left unaddressed.
“Currently charity shops are dominating high streets in small towns because they either pay no business rates or only 20pc.
“This allows them to put some of their budget to actually paying rent, making them appealing tenants for some landlords.
“If we are to rebuild our high streets and shopping areas into vibrant, diverse, community-focused spaces, it is vital that business rates are reduced to give small and local businesses a fighting chance.”
This article is part of our Supercharge East campaign, brought to you in association with the Eastern Daily Press and Greater Anglia.
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