Business owner dismayed at prospect of "massive" rate rise

Dave Mellor Cycles, based at Frankwell, is set for a "massive" increase in the ratable value of his property under a review of business rates.

His is one of a number of Shrewsbury businesses bracing themselves for a significant increase in business rate bills from April.

Mr Mellor, has questioned the level of the increase, which has seen some areas of the shop valued at £245 per square metre, compared to other shops within Shrewsbury's river loop which he says will pay around £60 for a square metre of retail space.

The shop owner, who has been running the business since 1985, has appealed against the valuation which is set to lead to a huge hike in the size of the company's business rate bill.

He said: "It is a massive increase so it will be a big increase in what I pay. I am hoping there will be some transitional relief available but I am waiting to see what they do with that figure and why it has jumped up that much in the first place."

Mr Mellor said the situation has been mirrored for a number of businesses in Shrewsbury and said the changes would do nothing to encourage entrepreneurs.

He said: "It is just incredible. The government is saying rates have come down for the majority but I am yet to see anyone whose rates have gone down."

Mr Mellor said that the revaluation is the latest in a series of pressures affecting the business, including the changes in currency valuation in the wake of the EU referendum.

He said: "We are suffering massively. The actual business is very good, we've got great loyal customers and trade is good but it's outside factors that are hurting us, like business rates, the internet, and the change in the currency. We have just had a Specialized product which we sell that has gone up by 20 per cent because of currency fluctuations.

"Brexit started the uncertainty and that has been reflected in the dollar and the pound and that is what we buy our product in."

Mr Mellor said many businesses are facing the squeeze from all sides.

He said: "Things change. The internet has come on so we are fighting that but the rent of properties cannot go down. Most people's leases say rents can only go up, they cannot go down so if the property market has taken a dip our rent has not gone down to reflect the change, it has stayed the same. That is the trouble, our ratable value has jumped on that.

"I just hope there is some transitional relief available."