Small businesses in Cheltenham’s Montpelier area are grappling with severe hikes in business rates, with some owners reporting increases of more than 100%. These “eye-watering” rate rises are putting a significant strain on independent and family-run shops that form the backbone of the high street.
The sharp increases in rates come after pandemic-related relief was phased out, leaving businesses to face higher operating costs. Owners have voiced concerns that these escalating expenses could lead to closures and reduced investment in their operations.
David Burgess, who runs Contour Kitchens in Montpelier with his wife, explained the financial impact: “Last year, our business rates bill was £3,837. This year, it’s jumped to £11,452.” He described the hike as “a kick in the teeth” and warned that the increased costs would make it extremely difficult to maintain business operations.
Eleanor Wardle, owner of The Paragon Gallery, expressed similar concerns. Her business rates were £3,385 last year, but in just a month, they will rise to more than £10,000. “This is a time when we should be working to improve the high street for the future,” Wardle said, adding that the rising costs could put unnecessary pressure on small business owners.
Richard Dare, who runs James of Montpelier, a men’s clothing store, faces an even steeper increase. His business rates are set to soar from £8,188 to £21,145, an amount he described as “absolutely crazy” and “scary.” Dare said the new rates would force him to make tough decisions, including cutting back on staff and reducing reinvestment in his business.
The situation is compounded by the government’s decision to phase out pandemic-era relief, which had provided some cushion for businesses. A government spokesperson acknowledged that the current relief was “unsustainable” but promised that reforms would be introduced next year to provide smaller businesses with permanently lower business rates.
John Webber, a business rates expert, expressed concern over the severity of the rate increases. “I’ve never seen rates rise by such large amounts before,” he said. However, Webber noted that the government’s proposed reforms, set to take effect in April 2026, aim to establish a more sustainable system with lower business rates for high street retailers. He added, “I just hope these small businesses can survive the next 12 months to benefit from the permanent reduction when it arrives.”
The struggle faced by businesses in Montpelier highlights the broader challenges faced by high street retailers across the country, as they contend with rising costs, a changing economic landscape, and an uncertain future. The promised reforms offer hope, but for many small businesses, survival in the short term remains a critical concern.
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