Shropshire Star

Prominent Shrewsbury business owner selling up over business rates hike

The owner of one of Shrewsbury's most prominent businesses claims he is selling up as a result in the hike in business rates.

Published
Mike Avery outside Cromwells Bar and Restaurant in Dogpole

Mike Avery has put his business, Cromwells on Dogpole, up for sale with a £1million price tag and says he knows of at least two other hotels and bars in the town where the owners have either sold up or are actively looking for a buyer.

His hotel and restaurant, which employs 28 members of staff, has had a presence in Shrewsbury town centre for decades and the building dates back to the 15th century.

Mr Avery took over the popular business in 2010 and has poured more than £400,00 in to its upkeep, renovation and running costs and he estimates.

He estimates that since 2002 he has brought more than £10 million to the economy of the town.

But he has decided to sell up as he feels he can not compete with national chains and says he can not stomach the 'unfair and unjust' way he is being treated with regards to business rates.

"The authorities are ignorant and unhelpful," he said.

"Some of the big names in the town, high street names and new chain restaurants which have just come in are paying way less in business rates than we are.

"It is grotesquely unfair. Our rates were £37,500 in 2010 and the thanks to the Government's Valuation Office our rateable value has now risen to £76,000. And I am not the only one. There are two very prominent hotels and bars in the town who have either sold up or are looking for a buyer.

"I have appealed to Shropshire Council and our MP Daniel Kawczynski about this and they have both been less than helpful. The MP sent me a letter from the head of the Valuation Office, who are an Agency of HMRC, who assess a commercial property's Rateable Value. She told him that other commercial property's rateable values are private. This is a nonsense.

"The system of rating is insane. It's not fair, logical or at all supportive of small to medium businesses in the town centre. It's nice to know that we are all working hard to subsidise the chains.

"The rise in the rateable value of a business means that there will not be the spare money left with which to reinvest. Older buildings are going to get hammered. This is an obscene scheme.

"Once I have sold Cromwells I will be moving away from Shropshire. I have done nothing wrong but the business investments have been screwed and no one seems to care. We are considering moving abroad rather than suffer at the hands of the most useless national and local administration that I can recall."

In October Shropshire Council and Shropshire Business Board urged eligible local businesses to apply for business rates relief.

A discretionary business rates relief scheme was announced in the March 2017 Budget to help alleviate the increased financial burdens created by the business rates revaluation which came into effect on April 1.

The council has identified over 1,000 businesses with a rateable value between £15,000 and £200,000 that have seen an increase in their net rates, after all other reliefs have been taken into account.

The council declined to comment.