TRADERS in Okehampton will hold a meeting to discuss strategy in the wake of a controversial Budget in which the Chancellor tried to appease fears about huge business rate rises.

The town’s business community has vowed to work together to plan a way forward in light of the recent Budget announcement.

Last week, Chancellor Philip Hammond announced measures designed to ease the burden of business rates across the country, amounting to a giveaway of £435-million over the next five years.

He said that under the new measures businesses with a rateable value of £12,000 or below would receive a 100% business rate relief. He also said any business coming out of small business rate relief would benefit from a cap which prevented the rate that it paid from going up by more than £50 per month.

He stated that the Government would also provide a £1,000 discount on business rates bills for all pubs with a rateable value of less than £100,000, which includes 90% of all pubs in England.

The Chancellor said that local authorities would be provided with a £300-millon fund to deliver discretionary relief in local areas. However, West Devon Borough Council said it had been given no detail of how the discretionary fund would work.

Business leaders in Okehampton have branded the way business rates are calculated as ‘prehistoric’ and expressed concerns about how the rises in business rates might affect the town.

Linda Harper, chair of Okehampton Chamber of Trade, said: ‘The way business rates are calculated is prehistoric. We would suggest that the following formula be adopted. The Government should calculate business rates on two separate assessments.

‘The first being a fixed business rate to cover all the council’s costs related to providing services such as infrastructure just as a private dwelling is charged.

‘The second — a variable charge based on turnover or profit based on figures supplied to HMRC.’

She said that this would be a much fairer way to calculate business rates as it would be ‘based on a business’s ability to pay’.

Nigel Wayne, owner of Aims Accountants in Okehampton, said: ‘The spring Budget was in character similar to so many before it. For small businesses there were conciliatory gestures on capping small business rate rises and useful rates discounts for smaller and medium sized pubs, as well as increased VAT registration thresholds. However, in my opinion these were significantly outweighed by the increases of national insurance for the self employed, the general rises in business rates following this year’s re-valuation, the reduction in the dividend allowance and several other measures.

‘As always the Chancellor giveth with one hand but taketh away with the other. It does seem to be a continuing trend that the take is bigger than the give at the levels that owner managed businesses work.’ 

Lynn Oakley and David Pamment, of the Purple Penguins jewellery store, said that their business was now exempt from business rate charges and that they personally benefited, however, they were concerned by the effect the recent changes might have on other businesses in the town.

‘I really hope other shops in Okehampton are not affected negatively,’ said David.

‘From a personal perspective, it helps us immensely as we do not need to pay business rates. For us it’s a godsend. However, I am concerned for the high street in general.

‘There’s a knock-on effect at play, I have seen it in the neighbouring town of Tavistock — if businesses around you begin to struggle it affects you. There are now many empty shops in Tavistock.

‘I just hope the businesses in Okehampton can pull together, be community spirited and carry on encouraging locals to keep shopping in the town.’

An Okehampton Chamber of Trade meeting will take place on March 30 to discuss the recent Budget announcement as well as other matters affecting businesses in the town.