What impact will reducing business rates and taxing on line retailers have?

Putney High Street has had a terrible couple of years as unit after unit has been left empty. The loss of big names such as Marks & Spencers, Halfords, River Island, Claire's Accessories abd Top Shop has left residents concerned and smaller business also feeling the impact - Penelope Red has moved west to Richmond earlier this year, having said footfall dropped immediatey after the closure of M&S and her business could not continue in Putney.

On Monday (29 October) in whats is expected to be the last budget pre Brexit Philip Hammond MP announced, £900m in business rates relief for small businesses and £650m to rejuvenate High Streets.

The business rates bill for firms with a rateable value of £51,000 or less is to be cut by third over two years and in attemptyto level the playing field for business fighting sales taken by online companies, he announced a new 2% digital services tax on UK revenues of big technology companies, from April 2020.

Local resident and commercial agent Nick Gulliford commented: "The budget is likely to help approximately 30 - 40% of retailers along Putney High Street who’s rateable value is £51,000 or below and will benefit from new reductions in business rates. This will also help the majority of independent retailers on the Lower and Upper Richmond Road. That said more help is needed for stores on the bracket above and we do not believe this will have much of an impact on larger multiple retailers of which we have seen a number of casualties this year".

Wandsworth Council leader Ravi Govindia has welcomed the Chancellor’s announcement , Cllr Govindia said: “We welcome the Chancellor’s decision to offer more support to shops and small businesses and hope to receive our share of this funding so that we can do more locally to help our local businesses flourish.

“The more we can do to support our high streets and town centres the better it will be for the wider economy. More successful shops and businesses mean greater employment opportunities for our residents and more leisure and retail choice for our residents. Our town centres are at the heart of local communities and are key to making Wandsworth such a special and prosperous borough.”

Putney's MP Justine Greening responded to the budget: “I’ve been pressing the Chancellor to take clear action to support Putney High Street, and others like it, in today’s Budget. Our Council is already investing in upgrading our High Street, including measures to cut air pollution. I hope that this £675m Future High Streets Fund can now help to unlock the next stage of improvements that Putney High Street needs to make it more pedestrian friendly, with a better shopping environment. I’m also interested in seeing how Roehampton High Street and Southfields Village might also be able to benefit from the Fund.

She continued, “I’m also particularly pleased to see that extra support through the business rates system means that bills will be cut by a third for retail properties with a rateable value below £51,000 for 2 years from April 2019. This will really help some of our smaller, independent local shops, pubs and restaurants across Putney, Roehampton and Southfields which I know local residents hugely value so it’s great that the Government is supporting them.”

November 9, 2018