Why some Businesses are doomed at this Rate

by Alan on October 10, 2009 · 3 comments

in Business, Moans, Politics, Wales

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My brother-in-law owns a chippy, a really good one that produces “probably the best chips you’ll ever eat”, but yesterday he received a notice about his business rates for next year. His business rates will increase next year by 60%.

Did you get that - 60%!

And for what? There’s no explanation and no commitment. Surely you could expect some extra information for what equates to a £125 per week off his profit line.

His restaurant is open for 363 days per year and employs over 20 staff. He has regular customers that turn up day after day and week after week. The council services do not extend to providing working CCTV nor to collecting rubbish which he pays for privately.

But he recognises that the nation is in a real mess, financially and that tough choices are needed. And he’s prepared to play his part. But he’d like to know if there is a plan to fix the problem.

He really does not welcome a new rate that will penalise him. He is fed up with a bloated, arrogant public sector that believes it can bill him to help them get out of this hole, without providing some information to support the decision.

As a business man he needs to make his books balance and he will now need to find the £125 a week.  His options are to lose it from the bottom line or cut costs. The result is that he’ll probably not open for some of those quiet hours that he used to open for and will therefore have less staff hours to pay. As a result some of his staff will be worse off every week.

But let’s remember that in this particular business there are options: for some smaller businesses this tax will be crippling. In fact they will be so crippling that many will close, which has to be the worst possible result for the country.

By imposing this tax on a business our irresponsible Government are definitely going to make some staff poorer. They are also threatening some businesses and will force some to close as they cannot meet the new costs for no benefit.

That is why some businesses are doomed with this new Rate.

3 comments
Sybil Fowler
Sybil Fowler

Following on from your article we may be seeing soon the decline of another part of Cardiff. Rhiwbina village is under threat. Please add your suupport via our petition site. We know we are the davids in this battle, but hey you have to put up a bit of a fight. http://www.ipetitions.com/petition/Rhiwbina/

Wyn
Wyn

Sadly, this is how anti-business we are in Wales & the UK - whatever those in power may say. The message is 'start a new business and we'll punish you with taxes.' My own business of a few offices pays many times the amount I pay at home. But all we do is put one bag or rubbish out every week. We are paying for education & other services from our home council taxes. What a way to run a country!

Sybil Fowler
Sybil Fowler

That`s outrageous. How can any one justify an increase of that size. Is he getting a 60% increase in services. I guess not.

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