A Family Business on the Brink: Soaring Rates Threaten a Coastal Treasure
Imagine pouring your heart and soul into a beloved seaside attraction, only to be blindsided by a financial bombshell that threatens its very existence. This is the harsh reality facing Ben Llewellyn, director of Claremont Pier in Lowestoft, Suffolk, as he grapples with a staggering £43,000 surge in business rates. But here's where it gets controversial: while the government offers a lifeline to pubs, other hospitality businesses like Claremont Pier are left to fend for themselves. Could this be a case of unfair prioritization, or is there more to the story?
Claremont Pier, a cherished family-run establishment, currently pays £31,000 annually in business rates. However, come April, this figure will skyrocket to £74,000. This drastic increase comes as part of a broader trend, with many businesses facing sharp rate hikes as Covid-era support measures expire and property valuations are updated. The Treasury insists it’s ‘backing Britain’s businesses’ with a £4.3 billion support package, but Llewellyn describes the situation as a ‘kick in the teeth.’
The pier, a vibrant hub featuring bars, a nightclub, amusement arcade, shops, and food outlets, is more than just a business—it’s a cornerstone of the local community. ‘It took the wind out of my sails,’ Llewellyn admitted, reflecting on the moment he learned of the increase. ‘Everything feels stacked against us right now.’ Despite his determination to keep the business afloat, he acknowledges that grit and perseverance can only go so far. And this is the part most people miss: even if he succeeds, it may come at a cost—higher prices, reduced staff, and fewer opening days for visitors.
The process for contesting rate valuations, while technically available, often feels like an exercise in futility. ‘We’ve tried contesting before, but it’s always met with a flat ‘no,’’ Llewellyn explained. ‘Is it really worth spending hours filling out forms and pleading our case, only to be denied by a system that feels rigged?’
Adding insult to injury, the government recently announced relief measures for pubs, many of which have also seen their rateable values rise. While this is undoubtedly welcome news for publicans, it leaves businesses like Claremont Pier in a precarious position. ‘It’s great that pubs are getting help, but it’s not just pubs that are struggling,’ Llewellyn pointed out. ‘The entire hospitality sector is in crisis.’
The Valuation Office Agency (VOA) attributes the increases to market changes and post-pandemic recovery, noting that previous valuations were artificially low due to the economic impact of Covid-19. ‘By law, we must reflect the recovery in trade in our new valuations,’ a VOA spokesperson explained. However, this rationale does little to ease the burden on businesses like Claremont Pier, which includes two bars that don’t qualify for pub-specific relief.
The Treasury’s response—capping rate increases at 15% or £800 for smaller properties—feels like a bandaid on a bullet wound. While it may help some, it does little to address the systemic challenges faced by businesses like Llewellyn’s. ‘We back Britain’s businesses,’ a Treasury spokesperson asserted, pointing to the lowest corporation tax rate in the G7. But does this rhetoric match reality for struggling family firms?
As Claremont Pier fights for survival, the question remains: are we doing enough to protect the unique, independent businesses that define our communities? Or are we inadvertently prioritizing certain sectors at the expense of others? We’d love to hear your thoughts—do you think the government’s approach is fair, or is there a better way to support businesses like Claremont Pier? Let us know in the comments below.
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