Owners reel from ‘bombshell’ £10k demand Sudden bill ‘could force shop’s closure’

The owners of a city centre shop say a shock business rates demand for almost £10,000 has left them on the brink of closure.

Emma and Simon North, who run Queen Bee Home in Mercery Lane, have been hit with the huge bill after converting the back of the premises into a small cafe in a bid to boost takings.

They say they had no idea they had to inform the government’s valuation office - which sets business rates - of the change 18 months ago, because there was no increase in the shop size.

But now, the office has backdated the demand and says the arrears of £9,750 have to be paid within 30 days.

“This has come as a real bombshell because we have always paid all our bills, including business rates and VAT, on time,” said interior designer Mrs North, who specialises in selling unique home decor pieces.

“But the valuation office has apparently re-valued the business and backdated the charge since we got planning permission for the cafe.

“It really is a hammer blow when we work so hard and have poured our heart and soul into the business.

“The cafe really saved our bacon when retail sales dipped and, with some lovely loyal customers, has kept us going. But if they insist on the arrears being paid, we stand to lose it all.”

Mr North now works as an electrician part-time to help pay the household bills and even bakes cakes in the evening for the cafe.

He said: “So they decided to let us know 18 months after the change of use was allowed, that our business rates have increased by 65% from £18,250 to £30,750.

“We have only just renewed our lease but if we had known this was going to happen, we would have shut up shop after five years of trading.

“Quite simply, if they continue to demand all the money, we are finished and will be out of busi- ness.

“That will leave five shops in Mercery Lane empty which just shows the depth of problems facing small traders.”

The couple say their only hope now is to appeal to the valuation office for a reduction in the arrears and time to pay.

The valuation office said it would not comment on individual cases.

Business rates are collected by the city council. Spokesman Rob Davies said: “It is the responsibility of the business owner to inform the authorities when there has been a change that could affect the rateable value of the premises, and if additional business rates are required, the VO is allowed to backdate this.”