New plan to save shops in Oxford will affect 1,500 businesses

With growing numbers choosing to shop online and big names including cafe chain Patisserie Valerie and music specialists HMV going into administration, small businesses have been seeking all the help they can get to pay rent and rates.

Vacant units have sprung up Golden Cross off Cornmarket Street and in Cornmarket itself following businesses closing or moving into the £440m new Westgate Centre.

Read again: Fight to save Patisserie Valerie as chain falls into administration

In Chancellor Philip Hammond's budget in October he cut business rates by a third from April for two years for all retailers with a rateable value of £51,000 or less.

The Government said this would bring an annual saving of up to £8,000 for up to 90 per cent of all independent shops, pubs and restaurants.

Now businesses which have applied for the rate relief are set to feel the benefit.

Deputy leader of Oxford City Council Ed Turner said a total of 706 retail businesses across Oxford were set to receive Retail Relief, sharing a pot of £2.6m.

The eligibility criteria were set by Government and are the same in Oxford and neighbouring district council areas.

Businesses have to apply for the relief and the decision is subject to measures such as reliefs already in place and any other state aid.

Read again: Covered Market traders relieved after Chancellor's rate cut

Mr Turner added: "This business rate relief comes on top of other reliefs that businesses in Oxford will receive.

"We will be providing a further £2.3m in Small Business Rate Relief to 743 qualifying small businesses (with rateable values less than £15,000) and, in addition, Discretionary Revaluation Relief to 179 businesses with a total value of £267,000.

"We are very alive to the need to support businesses across Oxford, investing in quality city centre management.

"Given the challenges in the retail sector, I feel it is time for government to look at more wide-ranging reform of the business rates system, as well as the way local authorities are now funded.”

Read more: Golden Cross shopping arcade off Cornmarket looks 'empty and forgotten'

The Covered Market, which opened in 1774, has 63 units and all these have a rateable value below £51,000.

However, nine units receive 100 per cent small business rate relief, and two receive partial small business rate relief where the rateable value is between £12,000 and £15,000.

Graham MacDonald, who runs iScream gelateria in the Covered Market and is a director of the Covered Market Tenants Association, welcomed the help from the Government and the council.

He added: "The nature of shopping on the high street is changing and everyone feels under pressure, so small businesses need all the help they can get.

"This will certainly make trading in Oxford more tolerable for the next couple of years and might just encourage a few more businesses to open up."

Blue Blood sports store opened in the market last month, run by staff from the former Elmer Cotton store in Turl Street.

Haymans fishmongers closed in the market in 2017 and now trades from Osney Mead but the council, which owns the market, is in talks with a new fishmonger.

Part of the Haymans unit is now being occupied by the Teardrop micropub.

Read again: Jeremy Clarkson, Dec Donnelly and Richard Bacon join opening of new diner in Oxfordshire

Shops on the high street pay both rent and rates, facing higher costs than businesses trading only online.

It is understood that Sports Direct tycoon Mike Ashley has made an offer to buy the HMV chain, including Fopp, out of administration but only if a six-month rent holiday for stores is agreed.

Oxford retail expert Keith Slater said small businesses should check to see if they were eligible for all types of rate relief.

He added: "This will be a major blessing for a lot of independent shops, pubs and restaurants in Oxford, although of course the big chains will not benefit and some of them are struggling.

"I think there has been acknowledgement for some time that the business rates system needs overhauling – you can get two shops in close proximity with very different rateable values."

Witney-based Ben Molyneaux works with dozens of small businesses across the county through his business networking organisation The Oxfordshire Project.

He said small businesses were facing 'challenging circumstances' as people faced an uncertain future, which was impacting sales and decision making.

Mr Molyneaux added: "This will help to ease the pressure facing retailers in West Oxfordshire.”