Rates blow for city centre small traders

A initiative to bring individual shops and businesses into Inverness city centre is facing closure after losing a valuation appeal.

Angry traders in The Village have been told the venture in Union Street is to be treated as a single unit rather than small individual businesses. The ruling by the Highland and Western Isles valuation appeal committee following "a difficult and marginal case" will leave the man behind the project, Dave Lynch, facing an unaffordable rates bill of £48,000.

As he and the traders took in the news yesterday, Mr Lynch vowed to fight on, declaring the appeal hearing, held last month, had been unfair.

City business leaders are also calling for a rethink.

"We think it is worth fighting for," Mr Lynch said. "Someone has already been in contact with me saying they are going to get a petition going.

"We cannot pay the rates bill and ultimately we would have to cease trading as we are. The assessors will demand the full rates amount which obviously we cannot pay and therefore will meet up as a team to discuss it with all the traders here."

The Village, hailed as "a project of entrepreneurialism and innovation", opened just over a year ago in the former Toymaster’s store and offers space at low-cost rents to small independent traders. Shops include a skateboard store, a record shop and a vintage clothing outlet.

Mr Lynch argues each business should be assessed separately and be allowed to apply for small business rates relief.

"It is very very hard to make business work in this part of town at the moment," he said. "That is what the whole of The Inverness Courier’s Reinvent The City Centre campaign is about."

The decision letter from the appeal committee describes it as "a difficult marginal case." However, having considered the extent of control retained by Mr Lynch over the licensees in the building and the absence of clearly-recognised demarcation of the units and common areas, the committee decided on balance it was a single unit.

Business leaders are disappointed by the committee’s decision.

Stewart Nicol, chief executive of Inverness Chamber of Commerce, urged a re-think. "This particular enterprise is quite innovative," he said.

"The fact it was recognised as a difficult judgement emphasises the

decision could have gone the other way."

Mike Smith, manager of the Inverness Business Improvement District, said business people were continually being asked to be innovative in their approach to create new outlets.

"The Village has demonstrated a positive model which has given a number of small businesses the opportunity to develop," he said.

"Quite clearly these are individual businesses. We cannot understand why they would be treated as one."

Another hearing of the valuation appeal committee will be held next month to discuss the rateable value.

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