Rising business rates putting pressure on salons
Business rates are rising on a faster scale than rents and turnover, increasing the pressure on small businesses such as salons, according to new data.
The Property Data Report 2015 revealed that business rates, on average, have increased at a much faster rate than other business costs over the last 10 years, particularly rental costs.
Business rates are also rising more quickly than income for most salons. In the retail sector, which includes highstreet salons, rental values have grown at an average of 0.2% per annum, compared to a 3.9% annual increase in business rates over the past decade.
Meanwhile earnings have increased by an average of 2.9% a year, according to the report, which was complied by the Property Industry Alliance. The total value of UK commercial property rose to £787bn in 2014, up 15% on the previous year, and occupiers of commercial property paid over £20bn in business rates.