High streets need more help - town centre boss

Aftab Gaffar, managing director of Ruby First, said help for high street traders needs to go further than the latest raft of measures unveiled by the Government.

A THOUSAND pound tax discount for high street businesses is not enough, the manager of Rugby town centre has said.

Aftab Gaffar, managing director of Rugby First, welcomed the two year annual £1,000 tax discount announced by the government last week, but renewed his call for a complete review of the system.

High Streets Minister Brandon Lewis said occupied retail premises with a rateable value below £50,000 would be eligible for the discount up until 2016.

He said the reform would “make a huge difference to many of the essential small shops and local traders we find in our town centres across the country”.

But Mr Gaffar said he would like to see more radical change to help retailers.

He said: “The system is out of date with businesses paying more per month on rates than rent which cannot be right. Rents have come down significantly and so should rates.

“I genuinely believe the system needs to change and would encourage Mr Lewis, as part of the government's long-term economic plan, to review it and in doing so help established town centre businesses and new start-ups.”

Councils have been informed as to which high street businesses will be entitled to the new discount, which will be automatically included in business rate bills.

Businesses specifically excluded include payday lenders, betting shops and pawn brokers.

The discount comes in addition to other measures to reduce the tax burden on small business that will come into effect in April, including a cap on tax rises, a 50 per cent reoccupation discount for new occupants of premises previously empty for a year or more, and allowing businesses to pay their bills over 12 months rather than 10.

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