Firm’s threat to move out over ‘unfair’ business rate
120548-817 SPAFIX (EB) MRW 15/2/2012 It is not fair ! - says Darren Waters (30) the MD of Spafix at Havant - his business rates are 4 times more than a nearby complex and yet the other business is thought to be ten times larger in size ! Picture: Malcolm Wells (120548-817)
A YOUNG entrepreneur with a growing business says he may leave Havant because of crippling business rates.
Darren Waters’ hot tub repair firm Spa Fix is going from strength to strength and employs 10 local people.
But he says business rates of almost £10,000 a year are forcing him to consider relocating.
The amount he pays is based on a calculation by the government’s Valuation Office that the annual rent on his 3,000 sq ft unit in Larchwood Business Park, Havant, should be £22,500.
In fact the rent is £15,000 and his business rate works out at £82 per 10.7 sq ft. A warehouse less than a mile away in Havant but seven times the size pays only £17 per sq ft.
Mr Waters said: ‘This unit was empty for a quite a while before I moved in and I thought the business rate would be around 40 per cent of the rent, which is normally the case but not what happened here.
‘Businesses are suffering because of this and all you have to do is look at places like Greywell Precinct, in Leigh Park, and the Meridian Centre in Havant.
‘There are units all around the area which are half full.
‘We need to be encouraging more businesses in, give them a chance to grow and help drive the country forward.
‘Obviously if I’m thinking about moving out of the area then other businesses are too.’
Although Havant Borough Council collects the business rates on behalf of the government the rentable values of properties are set nationally.
Councillor Mike Fairhurst, responsible for business at the council, said he would like to see Havant businesses given the sort of breaks available in Enterprise Zones in the north, Midlands and Wales.
He said: ‘Small, expanding, firms like this are vital to the future prosperity of the borough.
‘We want the well-paid jobs they provide going to people in the borough.’
David Willetts, MP for Havant, has vowed to see what he can do about the rates.
He said: ‘It does seem as if Mr Waters is paying a very high rate and it is something that I’m going to raise with the Valuations Office.
‘One of the things that the coalition is going to look at to bring business back to local areas is giving local authorities more scope to start lowering business rates.’
Mr Waters is appealing his rates with the Valuation Office and should hear back later this month.
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Comments
There are 15 comments to this article
Page 1 of 1
Yocal
Friday, February 17, 2012 at 10:55 PMWilliam Bell@13 Recessions are very short term blips in time and the whole point of being environmentally aware is to take a long term view, developing businesses not to fix short term problems, but to secure a future for future generations. What we do today influences the future. In fact the only way to change the course of the future is to act today! It's a form of delayed gratification, it's why people go to university and why people save money. If you bothered thinking a bit, you would realise that my comment was about policy and legislation. People always want to do business, but that business has to be aware of how it effects the environment around it. The point about having business rates that are graded in favour of 'green' business practices is that it doesn't ban anything, it instead encourages changes in habit. eg. if a business wants cheaper rates, then it is encouraged to reduce energy or only sell services that are lower carbon in nature.
Spherical Goldfish
Friday, February 17, 2012 at 02:55 PMYou can check business rates online
William Bell
Friday, February 17, 2012 at 12:28 PMI repeat that I am not sure why people think the rent is such a 'great deal'. There are long term empty units there so market forces would suggest its not! As for the environmental angle, maybe we should ban the production of cars and all the associated industries. We could then also ban airlines, and maybe the entire tourist industry. I am sure all these millions of people put out of work would thank you. I seriously can't believe that in this recession people arent glad there are people running businesses and creating employment and that people dont want this to be in their local area. It defies belief.
Yocal
Friday, February 17, 2012 at 11:23 AMThose things are wasteful of energy and add to CO2 emissions so IMO the business shouldn't even exist. I'm guessing that people are also cutting back on these luxuries. Business rates should be set based on the environmental sustainability of a business. Mike Fairhurst seems to have double standards. He is all for cutting emissions at HBC but is also supporting this sort of business. The two are not compatible.
lang1
Friday, February 17, 2012 at 10:18 AMwinge winge winge, its no good crying after the event. The outstanding fact of the matter is that you did not check the figures prior to moving in. Any business person would have to agree, you do not estimate on thoughts, whats and maybys. Yes, the business rates are high - but what a great deal on the rent! No pleasing some people!
Scotteee
Thursday, February 16, 2012 at 11:12 PMSounds very much like what this chap is asking for is a change in the law which only political will can achieve. Making an appeal to the VOA can only be within the confines of rating law as it stands, i.e. a rateable value is a hypothetical rental value in 2008. What's happened to the rental market since then and what rent he's paying today is irrelevant until 2015. Harsh, maybe, but that's the law. Revaluations are every 5 years and everyone is in the same boat. To revalue just one property would be inherently unfair to everyone else. And revaluing everyone more regularly than 5 years would be much more resource intensive, which in these days when government departments are cutting costs and downsizing is pretty unlikely. So unless this chap can prove his RV is more than the rents that were being paid in 2008 for his or similar properties (e.g. type, locality, size, age), then any appeal will be unlikely to go very far.
Budgie One
Thursday, February 16, 2012 at 08:31 PMour council tax subsidizes the north, our business tax does too.. our MP subsidizes himself with expenses.. so we pay pay pay.. I hope the guy gets a fair break, but the greed of the government and local council landlords is why we are in a poor area. No companies come here as its cheaper elsewhere. so no jobs. like many i commute by bus train and ferry to get to work because there is none localy.. and what sites there were are built on for housing and flats.. but they are not going to our children are they! So our kids wont have homes or jobs.. but what do we know? we are either branded racist or little Englanders if we pass comment but its time this unfair greed stopped and a bit of equal fielding for all happened!
mensi
Thursday, February 16, 2012 at 07:42 PM@ 7 dashwin, im with you on this, how can a appeal take 18 months, its totally ridiculous, i wish you the very best of luck mate
dashwin
Thursday, February 16, 2012 at 06:43 PMI am the person in this article. Firstly in response to "the moderator" yes I did ask what the business rates would be prior to moving in but this information was not presented to me until around 2 months after. I would have been aware in the back of my mind that it would most likely be 40% of the rateable value but I was sure that by showing the true rentable value of the unit was much lower, my rates would be adjusted accordingly. I would like to add that 2 out of the 7 units are vacant due to 1 folding and the other cutting costs and have been for over 6 months. The other 4 occupied units are all agree that we are being unfairly taxed. 3 units including my own are rented and all are paying under £18k in rent PA so would also normally be entitled to small business rates relief. The other 2 units are owned. The main reason for my article is I want the charges to be fair and realistic in today’s climate. The rateable value was set in 2008 and is not due to be reviewed until 2013 so in the mean time we are being charged around 66% of our actual rent. The most frustrating part of this is the process for appeal takes around 18 months each time. This means that most businesses will give up rather than fight to get things changed. I am also hoping that like minded businesses in the area feel the same way. I am aware that I still have a lease to run for another couple of years but once it is up unless things are different, I will be moving the business to more subsidised, appealing areas. The new business that I am currently in the realms of creating will be located away from the area and most likely away from Hampshire meaning that jobs I would be creating here will be created elsewhere.
griffon
Thursday, February 16, 2012 at 06:30 PMWilletts may vow what he likes but there's little he can do. The rateable values follow a strict formula and uniform business rate is set by the government. It's a case of one immovable object being met by another. Commercial property rents are a scandal with otherwise perfectly healthy businesses going under after facing swinging increases to keep fat cats up the standard to which they are accustomed.
William Bell
Thursday, February 16, 2012 at 05:54 PMThe rental value is whatever market forces dictate, so not a 'good deal' as such. Are you aware that in return for Business Rates the business is not provided with any services such as Refuse collection or collection of post? It is in effect another tax, but is levied in a completely random way. If you do a search of local industrial areas within Havant on the VOA website, you will see that similar places all categorised as 'warehouse' will be being charged vastly differing amounts per square foot. In addition, the government has introduced various measures to help businesses but none help businesses in Havant, despite it having three of the most officially deprived wards in England. New businesses in the midlands and north do not pay national insurance and and area of Gosport has been designated as an enterprise zone, meaning they do not pay business rates.
The Moderator
Thursday, February 16, 2012 at 05:46 PMYou didn't check the cost of the rates before moving in ? Dont forget if you have taken out a rental lease you will be obliged to pay the rent for the remainder of the lease so it could be very costly to move out. The ammount of rates you are paying are similar to those being charged in Fareham. If I were you I would be happy that I got the unit for a low rent. It appears to me that you are getting the unit rent and rates for the rental value alone, a good deal if you ask me !
Mike_Hunt
Thursday, February 16, 2012 at 05:06 PMhahahahahaha Darren Waters
Gamma500
Thursday, February 16, 2012 at 04:05 PMYou're quite right bladesblue and has been going on for sometime. The point is, what's Willets going to DO about it???????
bladesblue
Thursday, February 16, 2012 at 03:59 PMA Government set and imposed tax with only one purpose to transfer money to the North.If the taxpayer goes bust what does Government care, especially in the supposed super affluent south which is classified 3 poorest area in the whole UK. So poor the business tax is supporting vastly richer economies.
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