Simon Danczuk MP

Fighting for Rochdale, Littleborough and Milnrow

Traders in Rochdale set to get business rates reductions

For town centre traders January is usually a difficult month, as shoppers traditionally tighten their belts due to a post-Christmas financial hangover. 

But this year they could be set for a New Year’s boost in the form of a business rate rebate for the past two years.

After nearly two years of campaigning on the need for business rate reductions in our town, Rochdale’s MP has spoken to the Valuation Office Agency and received confirmation that many businesses in Rochdale will soon be offered a reduction on their business rates.

“I am told that the VOA have been working through the backlog of appeals and will be making recommendations to traders shortly,” said Simon Danczuk. “While the negotiations are confidential we have had confirmation that at least 50 per cent of traders on Yorkshire Street will get reductions with some getting 12.5% off their revaluations. This will be backdated for two years so we’re talking a significant amount. It also means they’ll be getting reductions for the next three years until the new revaluations in 2015.” 

Mr Danczuk has been a fierce critic of the Government’s decision to introduce the biggest hike in business rates in 20 years, which will come into effect in April, and says the VOA has been badly affected by cuts made to staffing levels by the Coalition.

“At a time when many retailers are going to the wall it is absolute madness for the Government to introduce the biggest rise in business rates in 20-years. This is a terrible decision by George Osborne,” he said. “I’m also concerned that staffing cuts are creating a culture of paralysis at the VOA. The fact that they processed just three per cent of Rochdale business rate appeals in the financial year 2010-2011 just shows how inefficient they have become to the detriment of local business.

“Last year it was reported that delays in processing business rate appeals are costing Manchester businesses alone over £9.5million a year and this is unacceptable. I have no doubt that there will be some businesses in Rochdale who appealed their revaluation for 2010 and are now no longer in business by the time the VOA have got round to dealing with their appeal in 2012.”

Local businessman and Co-Owner of 25 Ten Boutique on Yorkshire Street, Paul Turner Mitchell, whose Freedom of Information request first revealed the length of time the VOA was taking to process appeals, also welcomed news that appeals had finally been processed.
 
"I broadly welcome the news that the VOA is finally settling appeals but we need to remain cautious until the level of settlement has been announced," he said. "Top line reductions of 12.5% do not appear to go far enough for some businesses in Rochdale. I remain convinced that many businesses are being unfairly over-taxed on business rates and this is making it harder and harder for businesses to stay afloat."

With the VOA currently contacting traders to agree settlements, a spokesperson confirmed that businesses that had not even appealed, if their property is affected by the discussions, will be contacted and their revaluation adjusted too.