20% of Manchester business premises summonsed over rates

A HUGE proportion of North West businesses were summonsed to appear before a magistrate in the last year after falling behind on business rates payments, according to new research.

Freedom of Information requests to all local authorities in Greater Manchester, found 15,714 business premises were summonsed in 2012, an increase of 4.2% from 2010/11. Of those businesses, 8,351 were referred to bailiffs for collection.

In Stockport, which has one of the highest shop vacancy rates in the country, there was a 36% increase in summonses, while Salford was up 73%.

In Liverpool 4,608 businesses were summonsed. This represented more than a quarter (27%) of business premises in the city. The Greater Manchester numbers represent 20% but do not include Wigan which did not respond to the request.

The research was carried out for former Focus DIY chief executive Bill Grimsey who is carrying out an alternative high street review after becoming frustrated with current government policy. He has assembled a team of experts from a number of disciplines and plans to submit his report to the three main political party leaders this autumn.

Nationally the figures show that one in seven business premises, or 262,000, had been summonsed, based on 90 Freedom of Information requests. The data also shows how local authorities are taking a much harder line when it comes to recovering business rate debt. The use of bailiffs by councils to collect these debts has increased nationally by 18.32% since 2010/11 and by 24.38% across Greater Manchester, according to the report.
 
The research was collated by Paul Turner Mitchell, founder of Rochdale-based 25-Ten boutique. He said: “Year after year we’re seeing big rates rises. We’ve had two recessions and virtually no growth in the last five years. Yet the government’s medicine to support businesses has been a £2bn rise in business rates in the last two years. This does not make sense. We need to be supported not seen as just a cash cow.
 
“While ministers boast about freezing council tax to support families they’ve done nothing to support the lifeblood of our economy and kept piling on taxes for small businesses.”

Mr Grimsey said: “It’s clear to me that a root and branch reform is needed to make business rates fair and equitable and less of a burden on retailers as a whole. This is what my review will be looking at and we’re working hard to develop alternatives.”

Business rate campaigners say some firms are paying more in rates than on rent and are continuing to push for a revaluation of rates based on current property values. At present they are still based on 2008 values which favours London businesses where property has continued to increase in value.