Star comment: Get ready for a revolt over business rates
In the corridors of power, the review of the business rates will have seemed a sensible move, to update the system, and get rid of anomalies and injustices which have arisen through the passage of time.
What has happened is that the changes have created a system with a whole new set of anomalies and injustices which are taking small traders to the edge of revolt.
As these are just the sort of people the Conservative Party proclaims that it wants to encourage and support, the upshot can be compared to a carefully aimed shooting of oneself in the foot, causing a lot of upset.
This is something the Tories could well do without in the wake of the embarrassing about-face over an increase in National Insurance contributions for the self-employed. That U-turn was rapid and complete. The Chancellor said that he had "listened" and taken on board the points made.
So how long will it be before the Government listens to the howls of anguish in response to the changes in rateable values for businesses?
There are going to be winners, and there are going to be losers. But the problem is that a lot of the winners look like being larger concerns, which are going to pay less when arguably they are the ones in the best position to pay more. And the losers are going to be smaller concerns with typically smaller profit margins, which are much more vulnerable.
Shrewsbury is being held up as the sort of place which will be particularly badly hit. One of its great attractions for shoppers is the range of small independent shops, along with salons, and pubs. Many are seeing their rateable values rise. You can imagine how they feel when they discovered that the rateable values of big name stores are being cut.
This is a big change which is being introduced all at once when it would have had more acceptance if it had been introduced gradually, giving an opportunity for adjustment.
That is a matter of implementation. The deeper gripe is, though, not the way that it is being brought in, but that it is unfair in any event.
It is increasing the pressure on the smaller concerns with the danger that some of them will be squeezed out. That would result in a town like Shrewsbury losing much of the diverse mix of shopping which is such a part of its appeal.
And the amount of business rates revenue would actually fall, making the whole exercise counter-productive - a lose-lose situation.
