SKY-ROCKETING BUSINESS RATES COULD WRECK EASTLEIGH'S TOWN CENTRE - HUHNE

12.00.00am UTC (GMT +0000) Mon 21st Aug 2006

Eastleigh MP Chris Huhne is championing the cause of Eastleigh shopkeepers who complain about the sharp rise in business rates. Mr Huhne warned that "sky-rocketing business rates could wreck Eastleigh's town centre".

A Liberal Democrat survey shows that the Government's business rate valuation officers have ignored a big increase in vacant properties in the town centre. "The evidence of unlet empty properties is clear: the rates have been pushed far too high in Eastleigh" said Mr Huhne.

Local business owners have complained to Mr Huhne that the 65 per cent rise in the rateable values - the key determinant of rates - does not reflect the reality of business conditions, and risks pushing many small traders out of the town centre altogether.

Mr Huhne has taken up the case with the business rates valuation office in Southampton. "The valuation officers are simply not taking into account the difficulty of doing business in Eastleigh town centre" said Mr Huhne. "They have based the rise in rates on one or two rental contracts taken out with big national chains, without proper regard to local trade and rising vacancies.

"Our survey, based on information that I challenged the valuations office to produce, shows that the number of vacant shops in Market Street and High Street has nearly doubled from 7 in 1999 to 13 in 2005. It is absurd to raise rateable values by 65 per cent - the rise between 2004 and 2005 faced by a typical trader in High Street - when there has been a sharp increase in the number of vacant properties in the town centre. The number of empty premises does not lie: rents and rates are just too high.

Local traders who are concerned about the rates rise include Mr and Mrs Donald and June Greening who run Charlie Girl, the hairdressers in High Street, Eastleigh. "Mr and Mrs Greening are right to be concerned about the sky-rocketing rise in business rates" said Mr Huhne. "These government officials could easily price small traders out of the town centre altogether."

Mr Huhne has written with his concerns to the valuation officer, and is keeping Eastleigh borough informed of his complaint. Both the rateable values and the rate for businesses are now set by the Government, not the local authority.

"If the local valuation officers are not able to take the rising number of unlet properties into account, I shall question ministers about the need for a change in the law" said Mr Huhne.

Mr Huhne pointed out that life was already difficult for small traders thanks to the increased competitive pressure from the big out of town retailers such as ASDA at Chandlers Ford, Sainsbury at Hedge End and Tesco at Bursledon.