UK High Streets are on the brink of collapse as the eight-week countdown to the next quarterly rent instalment begins today, Cheltenham Business Improvement District (BID) has warned.
Figures released today show 54,638 businesses from pubs to shops, restaurants, cafes, bars, hotels, galleries and gyms are currently unable to access the £25,000 RHLG grant due to their business rates valuation falling between £51,000 – £150,000.
In the Cheltenham BID zone alone, there are 149 businesses missing out on the grants because of their rateable value being above £51,000.
Plans for a £617m discretionary fund announced by Government on May 2 do not go far enough according to industry bodies, associations and business owners across the UK, with no guarantees local authorities will issue relief.
The Government has made clear that this fund is for specific purposes, none of which support businesses with a rateable value between £51,000 to £150,000. The #RaiseTheBar campaign estimates
A maximum of £1.365bn in Government support is needed to enable the RHLG grant to support all 54,638 businesses falling within a business rates threshold of £51,000 to £150,000.
The #RaiseTheBar campaign believes access to the £25,000 is the difference between survival and bankruptcy for some businesses on High Streets across England and Wales, which have welcomed an outpouring of support from the public during lockdown choosing to support their local communities.
The grant will enable businesses to mitigate significant stock losses and cashflow challenges, including rent, that wage subsidies do not address. Many businesses are not in a position to take on further debt or have serious misgivings about being able to survive the recovery and service loans. Other cash pressures include suppliers, service charges and the cost of re-opening to repurchase stock and ongoing running costs.
Kevan Blackadder, Director of Cheltenham BID, said: “We have businesses as diverse as independent jewellers, theatres, cafes, pubs and restaurants and fashion retailers in Cheltenham in desperate need of this money. Action is needed from the Government now.”
Claire Alexander, owner The Ebrington Arms in Chipping Campden and The Killingworth Castle in Woodstock, said: “We were utterly floored when the announcement to save hospitality turned out to mean next to nothing for us because we pay too much in business rates. 9,000 pubs like ours are currently left out and the face of the British pub will change forever if it not extended. We are the main employer in our villages, responsible for the wages of 47 families but we stand to lose everything as we have been abandoned by the grant scheme and its arbitrary cut off point as our business rates are £75,000 and £72,000. The Government has effectively said my business, my staff and the best pubs in the UK aren’t worth saving.”
Matthew Sims, CEO, Croydon BID and co-founder of #RaiseTheBar campaign said: “Access to the RHLG grant is a ticking time bomb for tens of thousands of businesses on our High Streets and in our local communities. There are just eight weeks until rent is due and the prospect of going under is an uncomfortable truth the Government needs to hear and act upon now. The consequences of failing to increase the business rates threshold are to grim to bear.”