Reeves may as well sack high street staff and pull down shutters herself | Politics | News

Don’t be surprised if you walk down your local high street in April and see more consent signs, shutters down and fewer staff behind the counter. Rising business rates are about to deal a major blow for thousands of small shop owners. Because they expected more from a government whose slogan was ‘growth’. They expected ministers to use the power they had to protect themselves and help them grow. When the government adopted this in the previous autumn budget they were expecting the same boost that the 40% reduction in retail, hospitality and leisure had given them.

So why wouldn’t they? After all, these are the businesses that politicians praise when they talk about strong communities and thriving high streets. The pressure these companies are under is no secret. Increasing public services, increasing employment costs and higher taxes have a negative impact. Growing up requires difficult choices; If it were easy it would have happened already.

Unfortunately, the failure to use the full statutory powers to get more help for small businesses on the high street was due to large firms lobbying heavily against any changes that would rebalance the system.

Unfortunately, those who will be most affected by this will be the small businesses we rely on every day: butchers, dry cleaners, hairdressers and pharmacies. Bakeries, cafes and bookstores, florists and pet shops, gyms and jewelers.

The loss of the previous 40% discount, the reassessment of the proportionate value of properties in April and changes to the formula behind the bills will be disastrous for our high streets and we have explained to Ministers and their chief advisers the impact this will have.

We’ve done our sums and know that the typical small firm that loses the discount will now face a 52% increase in its business rates bill over the next three years. £4bn as transitional relief sounds like a solution, but it actually clarifies how much of a bill it will need to carry – plus inflation – when it expires.

But at the end of the day, the reason doesn’t matter because the result is the same: staff cuts, working hours cut and growth plans shelved.

Victoria’s Cheese in Ely, Cambridgeshire, is a prime example of what can happen when you ignore high street firms. The owner, Victoria Dunthorne, is only in her second year of business and is being forced to downsize her business due to a 66% increase in business rates.

Of course, support for bars and music venues is welcome. But restricting aid to one sector and excluding another group entirely rings hollow for those left out of yesterday’s announcement.

There’s still a chance. With further cost pressure due to a rise in rates from energy fixed charges to employment costs, as well as the coup in April, the Treasury can and should look again at its spring forecasts. This doesn’t need to end badly. With the right choices, ministers can still prevent the unnecessary damage facing our high streets.