SHOPPING 5

RATES CUT
Independent traders in the Cathedral Quarter, who have suffered since the opening of Westfield, have been given a rates reduction. The Valuation Office has cut rates by up to 25% in some areas of the Cathedral Quarter in an attempt to ease their financial problems.

But the move has come too late for Martin Roper, who has decided to close two of his three Scenario fashion boutiques in the Strand, resulting in the loss of 11 jobs because takings have slumped dramatically.

He said, "Matters have not improved. It may pick up but I'm losing money and cannot afford to take the risk." Terri Reynolds, a member of the Federation of Small Businesses and owner of Ruby Shoesday, said, "We are really grateful. For some people, the saving over a year will equate to a month's rent." (Source: Derby Evening Telegraph, Dec/07)

LESS PROFIT
Traders in the Cathedral Quarter said they made less profit over the Christmas period than last year. Businesses in the area blame the drop in trade on the opening of the Ł340m Westfield Centre, which boasts nearly 150 shops and a cinema.

Terri Reynolds, who runs a shoe shop, said she wants to know what will happen to stores vacated by retailers moving to the new centre. She said Cathedral Quarter traders are struggling with poor sales.

Ms Reynolds explained: "We're trying to get by on what we're making now which is thousands of pounds a week less than we were making this time last year and it only takes a few weeks like that for you not to be able to pay your bills."

Martin Roper, who is shutting his footwear and women's wear shops, met the city council leader Chris Williamson at the Council House, along with two other shopkeepers from the Cathedral Quarter. (Source: BBC News, Dec/07)

SHOPPING

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Shopkeepers at the Westfield shopping centre are worried that high business rates could force them to close. Business rates are a tax calculated on the value of the shop set by the Valuation Office Agency, which is a branch of Revenue & Customs. David Middleton, who owns Toy Planet at the Westfield Centre, said the rates were 75% higher than he expected. The VOA said it would listen to the concerns of shopkeepers and consider whether further reductions in rateable values were warranted.

Many traders say they have been forced to cut the number of staff in a bid to save money and smaller, independent stores could close if the rates are not reduced. Christopher Matthews, owner of jewellery store Crystal Chain, said that the rateable value of his business was set nearly Ł10,000 higher that the rent he pays every year.

He said, "The valuation office has set unrealistic rateable values which are devastating businesses already struggling for survival. Shops in the new Westfield centre are paying crippling business rates based on rateable values, which are way in excess of the actual rents being paid. I have had to cut the number of staff in my store down to one person as I cannot afford to keep anyone else on." (Source: BBC News, Mar/08)

The cost of a campaign to support independent traders in the wake of the opening of Westfield was more than Ł800,000, which the city council spent on advertising and street improvements. It announced it was also investing a further Ł825,000 a year on rate relief for businesses in the Cathedral Quarter. A report shows that Ł863,139 was spent on directly or indirectly helping small traders in the city. Council leader Chris Williamson said the figures showed the authority was committed to helping small businesses in the city thrive.

The amount includes Ł30,000 spent on producing vinyl posters, which have been put up in the former Debenhams store windows in Victoria Street to promote the Cathedral Quarter, Ł7,000 for additional Christmas lights in Victoria Street, Green Lane, Strand, Bold Lane, Cheapside and Queen Street and Ł30,000 on more litter bins in Strand, Sadler Gate and other areas of the city. A further Ł26,000 was used for repainting benches, bins and posts in Iron Gate, Sadler Gate and Cornmarket. (Source: Derby Evening Telegraph, Feb/08)

Companies will be able to influence what improvements are made in the Cathedral Quarter after voting in favour of the area becoming a Business Improvement District. Following a month of voting, the majority of businesses in the area have agreed that the Cathedral Quarter should have BID status. The campaign for the Cathedral Quarter to become a BID was launched in March. Several months of consultation followed to formulate a business plan, which was formally unveiled in October.

It highlighted five key objectives, to increase awareness of the Cathedral Quarter, improve access, extend the length of stay by visitors, make visitors feel safe and secure and to increase the amount of external investment. The plan recommends ideas including seasonal marketing campaigns and a visitor loyalty scheme, subsidised or free parking, extension of bus routes and a cleaning "hit squad". Street wardens to meet and greet visitors will be introduced to help them feel welcome and safe.

Business Improvement Districts are part of a Government strategy to encourage local authorities and business communities to work together. Under the scheme, rate-paying businesses have a say on improvements in the area and pay an extra levy to put them in place. To go ahead, the plan needed the backing of 50% of the businesses, which need to hold more than 50% of the rateable value of those which voted.

The new BID proposals will now go ahead as 84.7% of participating businesses voted in favour. They also represented 74% of the rateable value. From March, each business in the Cathedral Quarter will pay a 1.5% levy on their rates, meaning the BID should generate more than Ł1m for the Cathedral Quarter in its five-year lifetime. All the improvements paid for through the BID will be in addition to those already provided by the council. (Source: Derby Evening Telegraph, Nov/07)

The future of independent retailers in the city centre is being threatened by the recent opening of the Westfield Centre. Several shops have had to make staff redundant and claim they will have to close in a matter of weeks. They are calling for a rescue package including a decrease in council rates to help traders hurt by a drop in business. City council leader Chris Williamson said they were working with businesses to raise the profile of the area. He said local traders had been aware that Westfield was opening for a long time.

However, Westfield managers insist the extra retail outlets and the increased number of shoppers they would attract would benefit everyone. Terri Reynolds, who owns Ruby Shoesday in Victoria Street, said last week her shop took just Ł900, compared to nearly Ł6,000 in the same week last year. She said, "The day Westfield opened, we got a letter saying the rates we pay to the council were going up by Ł2,500. That means I am paying Ł20,500 a year in rates and when my takings are falling to Ł900 a week and I also have a rent bill of Ł26,000, the sums don't add up." (Source: BBC News, Nov/07)

Companies will be able to influence what improvements are made in Derby's Cathedral Quarter after voting in favour of the area becoming a Business Improvement District. Following a month of voting, the majority of businesses in the area have agreed that the Cathedral Quarter should have BID status. The campaign for the Cathedral Quarter to become a BID was launched in March. Several months of consultation followed to formulate a business plan, which was formally unveiled in October.

It highlighted five key objectives, to increase awareness of the Cathedral Quarter, improve access, extend the length of stay by visitors, make visitors feel safe and secure and to increase the amount of external investment. The plan recommends ideas including seasonal marketing campaigns and a visitor loyalty scheme, subsidised or free parking, extension of bus routes and a cleaning "hit squad". Street wardens to meet and greet visitors will be introduced to help them feel welcome and safe.

Business Improvement Districts are part of a Government strategy to encourage local authorities and business communities to work together. Under the scheme, rate-paying businesses have a say on improvements in the area and pay an extra levy to put them in place. To go ahead, the plan needed the backing of 50% of the businesses, which need to hold more than 50% of the rateable value of those which voted.

The new BID proposals will now go ahead as 84.7% of participating businesses voted in favour. They also represented 74% of the rateable value. From March, each business in the Cathedral Quarter will pay a 1.5% levy on their rates, meaning the BID should generate more than Ł1m for the Cathedral Quarter in its five-year lifetime. All the improvements paid for through the BID will be in addition to those already provided by the council. (Source: Derby Evening Telegraph, Nov/07)

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