Acomb Business Rates discount neighbourhood identified

Superdrug Front Street

The York Council has now identified the streets that will benefit from the empty property Rates discount scheme

Empty retail properties brought back into use on Front Street, Green Lane, The Green, Wetherby Road and part of York Road will benefit from a 50% reduction in Business Rates.

The government introduced a scheme which gave Rates discounts on commercial properties that were brought into use after being empty for over 12 months.

The Council has extended that scheme to any retail property that becomes empty.

Concerns have been raised that this will benefit national chains that could pay half the Rates of local independent competitors for as long as 18 months.

As a letter to the local newspaper explained, far from helping independent retailers this could signal their death knell.

Figures released last week show that there are now only a handful of properties currently empty in the Acomb Front Street area.

However, with leases now changing hands regularly as the economy improves, it seems that this well intentioned initiative may be both costly to taxpayers and harmful to many existing traders.

Acomb Business Rates discount

Mystery deepens over Council decision as FOI response reveals only 4 empty units may be affected.

11-15 Front Street

11-15 Front Street

The Labour Cabinet came under fire earlier in the month when it nodded through a proposal to give 50% Rates relief to any empty property in the “Acomb” area that was brought back into use.

Now the Councils list of empty retail (and commercial) properties in the YO24 and YO26 area has been published.

The list reveals that the main “problem” property (which is also very prominent) is 11 – 15 Front Street (part of which was formerly occupied by Superdrug). We understand that the property was sold be the Coop Bank a couple of years ago and is now understood to be back on the market.

Many will feel that this site needs redeveloping although what Rates discount would apply to new properties remains unclear.

As we have said before, there is a good case for improving on the government scheme which gives a Rates discount on re-occupied properties which have been empty for more than 12 months.

However if discounts apply from day one then this could rightly be regarded as unfair competition by existing traders.

It was pointed out at the time, that the area of benefit was ill defined and – if it was intended to boost the Front Street area – then it needed to be focussed on longer term empty properties.

With the recession now ending it appeared that most shops had either been occupied or were under offer. Some prime sites are now understood to be changing hands at a premium.

The LibDems submitted the following comments to the meeting earlier in the month

The Liberal Democrat Group was disappointed that the Labour Cabinet did not support a comprehensive regeneration proposal for Front Street at July’s full Council.

 This proposal, which uses powers given to Councils by the Coalition Government, seems to have been cobbled together in a rush – as the rewrites in the paper published on the council website indicate. Key details such as which exact area the discount will apply within are missing (the council papers refer only to “Acomb”). The paper does not explain why the scheme is restricted to retail premises (the similar Government scheme refers to all businesses) and it does not explain how temporary ‘pop-up’ units will affect entitlements.

 We would also like further information on how the process will work given the September deadline for applications. The concern that the discount could be used by national chains, moving into prime sites immediately as leases become available, is not addressed and no alternative proposals are considered e.g. focusing discounts on properties which have been empty for over 3 months (business rates are not payable on a commercial property for the first 3 months that it is empty).

 The Council needs to act promptly to clear u the confusion caused by its decision

Rates discount plan for Acomb may miss target

Dumping on Acomb shops car park

Dumping on Acomb shops car park

The Council may decide on Tuesday to introduce a 50% discount on Business Rates for any “empty” shop brought back into use in “Acomb”. The discount would apply for up to 18 months.

The Council still continues in a state of denial about public service standards in the Front Street area.

Weeds, potholes, litter and graffiti all add to the “run down” appearance of parts of the area.

Weeds taking over several streets in Acomb

Weeds taking over several streets in Acomb

Now the economic recovery is well established  properties are already being brought back into use. There are currently only 3 premises in “Acomb” which have been empty for 12 months or more.

The proposed discount scheme is similar to that introduced by the Coalition Government last autumn which awards 50% relief after a shop, that has been empty for 12 months, is reoccupied.

The Coalition Government had previously given powers in April 2012 to Councils who wished to extend Rate discount schemes to commercial premises. Quite why it has taken the York Council over 2 years to consider using these powers in Front Street has not been explained.

The Council will now consider making the 50% discount available to premises from the moment that they become empty. Although it is intended to fill the gap in provision for the period up to 12 months (when the mandatory government scheme kicks in) there is clearly a flaw in using taxpayers money to subsidise national chains who move into  prime sites immediately leases become available.

No doubt their shareholders would be delighted to receive a profits boost of this sort while existing shops might rightly brand the subsidy as unfair competition.

A more sensible approach would be for the Council to focus its discounts on properties which have been empty for over 3 months.

Business rates are not payable on a commercial property for the first 3 months that it is empty anyway.

Empty properties with a rateable value of under £2,600 are entirely exempt from Business Rates

The terms for the discounts in what the Council labels the “Acomb Business Development District” appear to have been thrown together in some haste.

  • The area that the discount will apply within is not defined (the Council papers refer only to “Acomb”)
  • The Council scheme is restricted to retail premises. The government scheme applies to all businesses
  • It is unclear how the temporary occupation of shops (so called “pop up” units, display only exhibitions and voluntary organisation use) will affect entitlements.
  • Para 15 of the paper suggests that applications have to be linked to “the three ambitions set out above” These refer to young enterprises, listed buildings and re-locations
  • The paper also suggests that applications will only be considered once a year with a September deadline (!)

Footnote

  • Small retailers are entitled to £1000 off their Rates (Rateable value of £50,000 or less) although not all traders have, as yet, applied for this discount.
  • Rates relief is available for existing small businesses (premises with a Rateable value of less than £12,000)
  • Charities and amateur community sports clubs get at least 80% Rates relief

Labour save York Cabinet flops

……as Labour vote down Acomb regeneration proposal

Labour managed to get enough of their members into the Council chamber tonight to avoid the ignominy of having two Council members sacked from their Cabinet positions.

Cllrs Alexander and Merrett had been widely blamed for the failure of the Lendal Bridge trial with the latter having promised to resign if the Councils action had been proven to be unlawful.

Opposition members pointed out that the withdrawal of the Councils appeal against the traffic adjudicators judgement was an admission of guilt.

Labour were however forced to admit that no decision on refunding fines had actually been taken and their spokesman would only say that a meeting to discuss the proposals would take place “shortly”.

Both the responsible Council member (Levene) in a TV interview, and an official Council Press release issued on Tuesday, had claimed that the “Council had decided to refund the Lendal Bridge fines”.

Both those claims have now been proved to be untrue.

Cllr Levene also said that he didn’t know how much it would cost to refund the Lendal Bridge fines.

Labour went on to vote down proposals to introduce an ambitious regeneration programme for the Acomb Front Street area.

Who is best for Front Street and Acomb Village – Labour or LibDems?

The two strongest parties in the west of York have thrown down the policy gauntlet to each other – 9 months before the crucial Council election poll which is scheduled to take place next May.

A motion about Front Street will be debated at tomorrow (Thursdays) Council meeting.

Acomb branch office closed by Labour in 2012

Acomb branch office closed by Labour in 2012

Absentee Labour Councillor S Burton kicked off the contest by tabling a motion which calls for the Cabinet to “receive options to consider extending business rates relief for all empty properties on Front Street being brought back into use.”

Liberal Democrat Councillors responded by calling for a much more comprehensive “regeneration” strategy.

At tomorrows meeting Cllr Lynn Jeffries will ask Councillors to vote for an alternative approach:

(more…)

Acomb market plans take step forward

Acomb Alive, the voluntary committee which is driving the regeneration of the Front Street area, have published a new newsletter.

Page 1 click to enlarge

Page 1 click to enlarge

Page 2 click to enlarge

Page 2 click to enlarge

In it they reveal plans which could lead to a street market being established in part of the (pedestrianised) section of Front Street.

This was the idea put forward a year ago by the Liberal Democrats, residents and traders but which received only half hearted support from the Council.

The present Council’s continuing antipathy towards Acomb is evident from the latest plans which show only a handful of stall spaces being made available.

Front Street market plan click to enlarge

Front Street market plan click to enlarge

What the area needs is a sustained boost to “footfall” figures if it is to benefit for the current improvement in the economy.

NB. An Easter Fair will take place on Saturday 19th April between 9:00am and 4:00pm at the Working Mens Club.

The fair will include an Easter bonnet competition.

Blow for Front Street Acomb

The media are reporting that the NatWest bank in Front Street Acomb is to close.

Front Street Acomb

Front Street Acomb

The report comes only 24 hours after York Council leaders pledged to close down licensed betting offices and quick loan shops on Front Street.

The Council have failed to say how they will address the problem of empty property in the area.

The decline in Front Street was prompted in 2012 when the Council closed its local Acomb office.

Despite a strong campaign by local Liberal Democrats, who feel that a regeneration project should be started by the Council to help sub-urban shopping areas, neighbourhood improvement funding has been slashed during the last 3 years.