Business rates cut welcome — but system needs reform, says Ripon BIDIndependent Harrogate bookshop sells 176 extra books to cover costsOpinion: Harrogate’s shops need lower, simpler rates — here is whyWild West-themed soft play business appeals for support to help relocate and prevent closure‘There’s only so much blood you can get from a stone’, warns Harrogate bar owner after rates hikeLocal pub and bar owners ‘sceptical’ over licensing changesBusiness rates to reduce for majority of Harrogate firms, says BID

A Harrogate business organisation has said a new business rates valuation will see the majority of local firms pay less.

Following a government review, Chancellor Jeremy Hunt decided to progress with new valuations of properties as part of his autumn statement.

An online service is available to show firms whether their rates will increase from April 1, 2023.

Sara Ferguson, chair of the Harrogate Business Improvement District, said she welcomed the review by government.

She added that while some businesses will see their rateable value rise, they will still receive support from government.

Ms Ferguson said:

“For a number of years, Harrogate BID has been asking the government to review business rates, and I’m really pleased this has now happened.

“Looking at the website, it appears that the majority of the business have seen their business rates reduced, which will be a relief to many, particularly with the rise in fuel, raw materials and energy costs.

“And for those that have seen their rate rise, those at the lower end of the scale will still benefit from rate relief, with plenty of small business not paying anything at all.”

Read more:

Last week, Mr Hunt announced £13.6 billion worth of business rates relief targeted at businesses that may see their rates increase.

Mr Hunt said the move would help to “soften the blow” for businesses with new valuations.

Business owners can check their valuations on the government website here.

Council misses debt recovery target by more than half

Harrogate Borough Council failed to meet targets for council tax collection, business rates and debt recovery this past year – which included one invoice worth £180,000.

According to a performance report due before the authority’s cabinet, the council missed its debt recovery target by more than half as just 18% was recovered against a target of 60%.

The authority said the performance was “significantly below” target. A total of £296,000 was referred to legal services to be recovered, of which £180,000 came from one invoice.

Officials said in the report that payment terms have been negotiated on the invoice and that they expect to recover the sum.

Read more:

Meanwhile, the borough council collected 97.9% of council tax against a target of 98.3%.

The authority also missed its business rates collection target by 1%.

Council bosses put part of the performance down to a slowing of collection in March when the country was put into lockdown amid the coronavirus outbreak.

Further support for those struggling to pay their council tax was revealed last week when the council offered to cut bills for vulnerable rate payers by £150.

It comes as the council has been hit with a deficit of £15 million amid the pandemic, part of which is down to a loss of income due to lockdown.

Senior councillors are set to discuss recovery plans tonight, which will include reviewing the authority’s budget and reserves.