Harringay, Haringey - So Good they Spelt it Twice!
Forces on the Way that May See Harringay's High Street a-Changin'
2016 has seen the latest revaluing of rateable values of business property. Pretty dull stuff for most of us. No reason to get excited every five years.
This time is different however. There's been a radical revaluing reflecting the change in property prices and economic success across the country. This means that whilst some towns in the north will see a dramatic drop in their business rates, London will see some eye-watering increases.
Hardest hit are central areas where average increases are as high as 45% but will be significantly more for some. Clerkenwell and Spitalfields have forecast increases of about 98%. The South Bank, King's Cross and the City of London are in line for significant rises between 60% and 70%. Shops on Regent Street in London face an 87% hike. But the biggest losers of all will be some individual businesses based in central London, with Dover Street, in Mayfair, earmarked for an enormous 415% increase.
Haringey itself won't see changes of anything like that level, but the draft rates list suggests that in 2017 rates will go up locally by around 15% - around £2.5k to £3k for the average Green Lanes business.
Taking all this in had me wondering what the impact would be on our High Street. There are two factors at work here. On the one hand the local rates increase, along with already rising rents will inevitably be the straw the breaks the camel's back for some. We'll likely see some struggling local shops begin to go to the wall. It will inevitably favour higher turnover, higher profit margin businesses with even less opportunity for innovative new operations. But I wonder if we'll also see an effect locally of the almost inevitable retail flight from more central parts. How far will it ripple out and will it come in our direction?
It seems almost certain that we're in line for some sort of realignment on our high street, but exactly how radical and exactly what shape it will take remains to be seen.
Replies to This Discussion
-
Permalink Reply by John McMullan on
-
I track my spending reasonably carefully and now realise that I spend significantly more money on Harringay based businesses/restaurants than I did in the past (basically pre-Durazzo). One reason could be that now they exist, so it was just the typical refrain of capitalism, "build it and they will come". However I am also a keen reader of reports from my employer's research department where they seem certain that the coming food price inflation because of the devaluation of the pound will be absorbed by consumers merely buying cheaper products and dining out less. I don't think they're aware that there are already a lot of people buying the cheapest they possibly can and not dining out at all but anyway, we have that in store for us too.
-
Permalink Reply by Paul Harding on
-
Higher business rates = less independent stores. More chains who can swallow the cost across their network. Clone town.
It's almost like the council have no grasp on the reality of online shopping contributing to the death of the high street. Increasing retail business rates feels like a narrow minded approach to raising revenue when the physical retail sector is struggling.
I'm still none the wiser as to what you actually get in return for paying business rates.
-
Permalink Reply by DTW on
-
An uneducated guess would be that it hollows out the middle. You will have more "expensive" restaurants that can have higher profit margins and pay the rate. And probably a rise of high turn over small profit shops with a lot of empty ones as well.
Aren't local rates about to be devolved anyway. So rather than a central pot they stay in the area?
-
Permalink Reply by Hugh on
-
Yes and that's possibly the sting in the tail. About a year ago The Guardian published an article about how self-sufficcient councils will be after the introduction of business rates retention. Guess which council came fifth from bottom?
© 2024 Created by Hugh.
Powered by
