Maybole garage boss furious over trebling business rates

Jul 23 2010 by Edwin Lawrence, Ayrshire Post (main ed)

THE ECONOMICS of the madhouse.

That’s a garage owner’s reaction to a TREBLING of the rateable value of his business.

“I’ve been given a higher rating than any garage in Ayr,” said stunned Maybole boss Brian Connolly.

“Small businesses are supposed to be leading us out of recession,” said Mr Connolly.

“But I am putting an expansion plan on hold to pay a massive rise in my business rates.”

Mr Connolly, 50, retired from a high-flying career in the RAF in 2002 to take over old-established businesses in his home town.

And his garage and hardware store still bear the name of business founder J D Cameron.

Mr Connolly is also Independent councillor for Maybole, North Carrick and Coylton.

“The new rates are a double whammy,” he said.

“Not only is the increase ridiculous.

“But you also have to pay in full in Scotland, whereas in England, increases are capped.”

Mr Connolly says he will appeal the increase – from £10,000 to £31,000 – on the petrol station business.

That valuation means in real terms he will pay £12,000 – up from £5000 – for the petrol station.

“That’s before staff are paid or any petrol is pumped,” he said.

“And we keep our price as competitive as possible, so it’s a very small profit margin on fuel,” he added.

“The galling thing is that I thought I might get rates relief when the threshold was raised from £8000 to £15,000,” said Mr Connolly.

“But then I found they had revalued the petrol station from £10,000 to £31,000.

“My first thought was that it had to be a joke – but it wasn’t.”

Mr Connolly employs 12 people in Maybole.

And he planned a small garden centre-type facility, between the garage and the hardware store.

This would likely have created another job or two – but not now.

“I’ve even had to end my sponsorship of our local football team, Maybole Juniors,” he said.

Business rates are set every five years by independent assessors.

And the information is passed on to the local authority – in Mr Connolly’s case, South Ayrshire Council – who send out the bills.

The new business rates for 2010 are based on what properties would have fetched in rental on the open market, if available for rent on April 1, 2008.

“I find the figures incredible,” said Mr Connolly. “Especially when we’ve gone into recession.”

The Scottish Government says its funding packages should mean just under 60 per cent of business ratepayers should see their bills decrease or stay the same as a result of revaluation.