PRA WELCOMES BUSINESS RATES REVIEW

Published 18/03/2015 00:00:00 in Press Releases

“Independent petrol retailers are struggling to survive as fuel prices and margins shrink, and so the PRA welcomes the Government’s pledge in the 2015 Budget to overhaul both the level and methodology applying to business rates”, comments Brian Madderson, Chairman of the Petrol Retailers Association (PRA).

Over 35% of these retailers have now developed symbol brand convenience stores on their forecourts to provide an income stream which supports low margin fuel (70% of the pump price is Government tax).

However, the current methodology employed by the Valuation Office Agency (VOA) is to assess forecourt stores for the ratable value on a turnover basis. In direct contrast their competition, local standalone convenience stores often owned by one of the “big four” supermarkets, is assessed on an area basis (ITSA).  Thus a forecourt may have up to 4 or 5 times the level of rates to pay for the same business activity.

Madderson continued, “This is clearly an unfair and anti-competitive tax regime which must be tackled by this promised overhaul. 

“We have already noted that the Northern Ireland Assembly has discarded its previous rates methodology for their 2015 Revaluation Scheme being implemented by Land & Property Services (L&PS). The new scheme includes balancing the methodology for standalone and forecourt stores to ensure that the many small often family owned and operated filling stations pay rates on the same basis.

“This is exactly why we are asking for Government to investigate when the review commences and the PRA will respond to all consultations.”

 

ENDS

NOTES TO EDITORS:

Rupal Rawal, Communications 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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