BUSINESS rates rises have been branded "horrendous" by business owners in one Hereford city centre street.
Estate agent box Jonathan Cook, of Flint & Cook in Broad Street claimed businesses are being "driven out of the city" by mounting challenges including a rise in business rates.
"There are times when Broad Street and King Street resemble a ghost town," Mr Cook said.
"The hike in business rates coupled with parking restrictions could be the final ‘nails in the coffin’ for some companies.
"We are desperate for new investment into the city - what message is this sending out?"
Simon Jones, chief executive at Marchants in Broad Street, said some businesses in Broad Street that had previously been eligible for small business relief and so did not pay any business rates, have this year found their rateable value increased to a level that will attract full business rate.
"The traders are telling me that they may well stop trading, as a consequence the properties will become empty and then who knows," he said.
"Everyone is very worried and unhappy, a couple of traders will be out in to the rate paying category for the first time and potentially will finish them off."
Rateable value is an estimate of a property's open market rental value. This value is set by a government agency called the Valuation Office Agency, and is used to work out the business rates bill for the property.
Some businesses simply want more clarity about the new valuations.
Julian Vaughan, managing director of the city's historic Green Dragon hotel, said: " We are keen to understand why our new bills are like this. We need to know the justification for the increase in rateable value and to feel like we are being listened to."
Hereford BID chief Mike Truelove said he recognised concerns about the latest business rates bills.
But, he added: "While some increases will feel unfair, it’s important to note that business rates are set by central government, with the local authority responsible for collecting them. It is also worth noting that some businesses will have seen reductions."
He said Hereford BID, alongside others, has "long lobbied" that the current system is "fundamentally unbalanced" with high street businesses paying around 94 per cent of retail rates while accounting for only 63 per cent of sales but online competitors contributing far less.
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"Because rates are based on property values rather than profitability, many businesses face high fixed costs even when trading is difficult, creating a barrier to investment and, in some cases, risking closures," he said.
He said "meaningful reform" is needed from central government, urging businesses to raise concerns with their local MP amid "real concern that change may not come quickly enough".
A spokesperson for Herefordshire Council said: “Herefordshire Council appreciates the concern raised by some local businesses following the recent changes in business rates.
"Business rates are set nationally by Government and are not determined by Herefordshire Council. However, we recognise the impact that they can have on local businesses and we want to ensure that eligible businesses are aware of the support that is available.
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"There are a range of reliefs and exemptions that may help reduce bills depending on individual circumstances. These include Small Business Rate Relief, Retail, Hospitality and Leisure relief, charitable relief, hardship relief in exceptional cases, and other targeted schemes such as improvement relief and rural rate relief. Some businesses may also qualify for reductions where properties are vacant or partially occupied.
"In cases where businesses are experiencing significant difficulty, the council also has a discretionary hardship relief scheme, which can provide further support where specific criteria are met.
"We would encourage any business concerned about their bill to contact the council’s Business Rates team as soon as possible so that their circumstances can be reviewed and all eligible reliefs can be applied. Support and advice are also available to help businesses understand what they may be entitled to and how to apply.”
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