CHANCELLORS GIVES HOPE TO SMALL FILLING STATIONS

Published 17/03/2016 00:00:00 in Press Releases

Details of the concessionary rates relief scheme announced by the Chancellor in his 2016 Budget provide a potential lifeline for small independent petrol filling stations (PFS), often located in remote rural areas.

The Petrol Retailers Association (PRA) and Experian Catalist found a further 165 small PFS had shut down in 2015. Since 2001 over 4,200 (62%) independent PFS have closed down across the UK.

Brian Madderson, Chairman of the PRA comments, “the Chancellor’s announcement was very positive news and a significant win for our lobbying to the Treasury on the issue of rates relief.

We had written asking for significant improvements to be made and now from April 2017 almost 70% of all independent PFS in England will benefit from the relief schemes.”

The PRA works closely with ratings specialists MUA Property Services who identified 1,084 PFS who currently have a Rateable Value (RV) below £15,000. We estimate that a 25% increase to their RV’s in 2017 would still see over 500 PFS below the new concessionary threshold.  This means that over 12% of the 4,345 independent PFS still operating in England would be exempt from paying any rates – a massive cost saving to their businesses.

A further 570 independent PFS currently rated between £12,000 - £15,000 would be subject to the tapered relief scheme from 2017, but still see measureable savings.

There are almost 2,000 PFS with RV’s between £15,000 - £50,000 that will benefit from paying on the smaller uniform business rate (UBR) with a site at the top end -saving £650 if the scheme came into force this year.

The decision to change the annual inflationary escalator from RPI to the lower CPI from 2020 was also further good news for PFS operators.

Meanwhile, PRA will continue working with the ATM ‘alliance’ to have through-the-wall cash machines removed from the rating list from April 2017 for small convenience shops, and push for the Value Office Agency (VOA) to work harder to capture business rates on hand car washes which would total up to £200m to the Chancellor’s annual tax intake.

 

ENDS

NOTES TO EDITORS:

Rupal Rawal, Press Officer
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web: www.rmif.co.uk  Email: rupal.rawal@rmif.co.uk

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.

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