SHOPS and pubs in York are fearing for their futures, as they face the threat of massive and potentially ruinous hikes in their business rates.

Public services also face renewed pressure, with York Police Station and York Hospital to be heavily hit.

New figures obtained by The Press under the Freedom of Information Act show that almost 500 businesses in the city are already in arrears on their rates, even before the changes, due to take effect in April.

By the end of January, City of York Council had issued 511 summons for late of non-payment of business rates, up from 489 in the entirety of 2015/16, and had applied to the courts for 299 liability orders, up from 273 in the whole of 2015/16, although both those figures were lower than in previous years.

Overall, York's business rates bill will increase only slightly in April, from £105.7 million to an estimated £107.8m, but the picture varies massively between businesses, with some facing reductions and others large increases.

The council's deputy leader, Keith Aspden, has urged businesses facing a big hit to lobby the Government, to call on them to rethink.

Local businessman and councillor Johnny Hayes warned that planned increases in rateable values could prove 'the final straw' for marginal businesses.

The Independent councillor's shop in Bishopthorpe Road, Frankie and Johnny's Cookshop, is facing a 25 per cent rise from £12,000 to £15,000. Speaking after new draft rateable values, which are used to calculate the business rates owners must pay, were published online by the Government, said: "It's very worrying for businesses. Ultimately, it has to come from somewhere."

Under the changes, York Hospital's rateable value is also set to soar from £1,620,000 to £2,120,000 and there are no exemptions for the NHS.

York Press:

A York Teaching Hospital NHS Foundation Trust spokeswoman said: "Our financial plans assume a level of increase for rates and other costs associated with our buildings. As with any price increase we will need to consider how we will absorb the costs within the year’s budget."

York Crematorium in Bishopthorpe will see its rateable value soar from £152,000 to £227,000, and York Police station in Fulford Road will see an increase from £355,000 to £390,000.

City of York Council's headquarters at West Offices will see a fall from £1.34 million to £1.27 million.

Pubs along Lawrence Street are facing increases but of differing amounts. The Rook & Gaskill's rateable value is rising from £11,250 to £17,300, the Rose and Crown from £15,000 to £25,500 and the Waggon and Horses from £9,625 to £15,400. Even a Travelex ATM site is set to rise from £900 to £2,000.

Paul Marshall, landlord of the Rook and Gaskill, said: ""I'm not happy. I'm going to have to find it from somewhere, although I'm going to go through the appeal process."

Simon Brind, who was tenant at The Mitre pub in Shipton Road until it closed earlier this month, told The Press the pub's rateable value was "ridiculous" and did not reflect the pressures on the industry. He said: "We were in arrears and we could not afford to pay the rates."

He said there should be more help for businesses.

York Press:

Northern Powerhouse minister and Goole MP Andrew Percy said in York on Friday that business rates across the north were being cut and the burden transferred to the south.

"If you look at retail, and small and medium sized pubs, there are significant reductions," he said. "In my own constituency, just up the road, the reduction is 15 per cent and across the North there is a cut in general.

"What we've said is that where there are specific issues, for those who have lost out there is transitional relief anyway, but what we will do other than that is look at what other support we can provide for those who are hardest impacted by the changes, and that will be announced in the budget.

"But remember, we have made small business rate relief permanent and we have increased it to £12,000 on people's rateable values. That's a significant change and 6,000 people will benefit."

Cllr Keith Aspden, deputy leader of the city council, said: “Estimates suggest that business rate bills will be going up on average in York as a result of the Government’s revaluation. Individual businesses could be facing big changes in rates with a significant effect on their viability.

“We will continue to work towards becoming a more business friendly council and I would urge businesses who are concerned about the changes to make representations to the Government.

"Not everyone is losing out as a result of the changes but where the revaluation is hurting businesses, the Government should be asked to think again.”

A Communities and Local Government spokesman said: “This revaluation improves the fairness of rate bills by making sure they more closely reflect the property market.

“Rateable values are set independently by the Valuation Office Agency, which uses a widely accepted method to assess NHS hospitals. We’ve also given local authorities the powers to grant additional business rate relief as they see they fit."

The figures obtained by The Press show the council is responsible for collecting rates from 6,602 business. As of early February, 498 of those were in arrears.

York's trends

Total arrears

  • 2015/16 - £3.68 million
  • 2014/15 - £3.91 million
  • 2013/14 - £3.76 million
  • 2012/13 - £4.67 million

Summons issued by the council for late or non-payment

Times the council has applied to the courts for liability orders