Empty shops have become a common sight on high streets up and down the country. The reasons behind this are varied and complex, but one factor that often gets overlooked is the impact of business rates on these empty premises.
Business rates are a tax on non-domestic properties that businesses have to pay to their local council. The rates are based on the rateable value of the property, which is assessed by the Valuation Office Agency. The rateable value is then multiplied by the multiplier set by the government to determine how much a business has to pay in rates.
When a shop is vacant, the responsibility for paying the business rates falls to the landlord. This is where the problem lies – landlords are often reluctant to take on this financial burden, especially when they are struggling to find tenants for their properties. As a result, many empty shops sit vacant for long periods, gradually falling into disrepair and becoming eyesores on the high street.
The issue of business rates on empty shops has been a topic of much debate in recent years. Critics argue that the current system is unfair and acts as a disincentive for landlords to bring empty properties back into use. They argue that the burden of business rates should be shifted away from landlords and onto the government, who could then offer incentives to encourage landlords to bring empty shops back into use.
Proponents of the current system, on the other hand, argue that shifting the burden of business rates onto the government would be costly and potentially unsustainable. They argue that landlords should take responsibility for their properties and that the government should focus on other ways to support struggling high streets, such as providing grants or funding for regeneration projects.
Despite the ongoing debate, it is clear that business rates do play a significant role in the number of empty shops on our high streets. The current system places a heavy financial burden on landlords, many of whom are struggling to make ends meet as it is. This can make it difficult for them to justify the cost of bringing an empty shop back into use, especially if they are unsure of whether they will be able to find a tenant.
One potential solution to this problem could be to introduce a temporary relief scheme for landlords who are struggling to find tenants for their properties. This could take the form of a temporary reduction in business rates for properties that have been vacant for a certain period, giving landlords some breathing space while they try to find a suitable tenant.
Another option could be to introduce a system of variable business rates, where the rate payable on a property decreases the longer it remains vacant. This could incentivize landlords to find tenants more quickly, by reducing the financial burden of keeping an empty property.
Of course, any changes to the current system would need to be carefully considered to ensure that they are fair and sustainable. The government would need to carefully weigh up the costs and benefits of any proposed changes, and consider the potential impact on both landlords and tenants.
In the meantime, the issue of empty shops on our high streets remains a pressing concern. These vacant properties not only detract from the appearance of our towns and cities but also have a negative impact on local economies. They can discourage customers from visiting an area, leading to a decline in footfall for other businesses in the vicinity.
Ultimately, finding a solution to the problem of empty shops will require a multifaceted approach. While business rates are just one factor in the complex equation, they do play a significant role in determining the fate of these properties. It is clear that a more sustainable and fair system is needed to encourage landlords to bring empty shops back into use, and to support struggling high streets up and down the country.