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Village Shops at Risk
Listed under: News
Published: Friday, July 24, 2009
Up to 47% of retailers in rural settlements are currently missing out on vital funds from their local authorities that could help see them through the recession, according to recent reports from the Federation of Small Businesses (FPB)
The findings suggest that despite the fact that single shops in village areas are entitled to at least 50% relief on their business rates under the Rural Rate Relief scheme, very few are currently offering retailers anything over the mandatory amount.
The FSB estimates that rural settlements are currently losing between 300 and 500 shops each year and that deperate measures are needed in order to prevent this from happening any longer. The organisation is calling for the Treasury to make more funds available for local authorities so they can grant larger relief rates for the businesses that need them the most.
"Every week we hear of the death of village shops and pubs yet the Rural Rate Relief scheme, which was specifically set up to help these rural businesses, is being chronically underused,” says Linda Walton, rural affairs and tourism chairman of the FSB. “These stores are at the heart of village life and the failure of such places can devastate local communities. The Treasury must ensure our rural stores do not go the same way as the Royal Show by enabling our local authorities to give 100% rate relief during this downturn."
Retailers agree something needs to be done. “While we have heard about the Rural Rate Relief Scheme and are quite familiar with what it entails, the Government and local authorities certainly don't make it easy for small businesses to access the relevant information and I often think they don't really want people to know what they are entitled to so they don't have to lose any money," explains Dorothy Holt from Holt's Art Shop in Cumbria. “Nowadays, if you need help, you have to actively look for it and many people are currently too busy fighting to stay alive to find the time.
“I would definitely like to see more done to help smaller businesses,” she adds. “It is terrible that so few of them are being offered the necessary funds they need to survive and I think it is about time the Government and local authorities get their act together, and help those that need it the most.”
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The FSB estimates that rural settlements are currently losing between 300 and 500 shops each year and that deperate measures are needed in order to prevent this from happening any longer. The organisation is calling for the Treasury to make more funds available for local authorities so they can grant larger relief rates for the businesses that need them the most.
"Every week we hear of the death of village shops and pubs yet the Rural Rate Relief scheme, which was specifically set up to help these rural businesses, is being chronically underused,” says Linda Walton, rural affairs and tourism chairman of the FSB. “These stores are at the heart of village life and the failure of such places can devastate local communities. The Treasury must ensure our rural stores do not go the same way as the Royal Show by enabling our local authorities to give 100% rate relief during this downturn."
Retailers agree something needs to be done. “While we have heard about the Rural Rate Relief Scheme and are quite familiar with what it entails, the Government and local authorities certainly don't make it easy for small businesses to access the relevant information and I often think they don't really want people to know what they are entitled to so they don't have to lose any money," explains Dorothy Holt from Holt's Art Shop in Cumbria. “Nowadays, if you need help, you have to actively look for it and many people are currently too busy fighting to stay alive to find the time.
“I would definitely like to see more done to help smaller businesses,” she adds. “It is terrible that so few of them are being offered the necessary funds they need to survive and I think it is about time the Government and local authorities get their act together, and help those that need it the most.”
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