Hotel owners ordered to pay rates on closed guest car park
TWO brothers who own a Birmingham boutique hotel are “trapped in a nightmare” after a legal dispute with the city council over a car park. Stuart and Darren Insall have been forced to temporarily close The Edgbaston due to Covid lockdown restrictions.
They had felt relieved when the Government abolished business rates for small firms in 2020. However, they are now being sued by Birmingham City Council for £5,680 in unpaid business rates for an empty car park at their establishment during the pandemic.
The pair said the gated car park is only used by registered hotel guests with a key code when they are open and has never been run as a separate car park business at the site in Highfield Road, Edgbaston.
“This would almost be comical if it were not so serious. We are trapped in a nightmare,” said co-owner Stuart. “The car park is an integral part of the hotel. If the hotel is forced to close the car park is forced to close.
“It is completely private, behind gates and can only be accessed with a code that you have to get from reception when the hotel is open.”
The brothers have three business rate accounts with the council on the same site.
It includes a 14-bed hotel at 16 Highfield Road, while there are three bars, a restaurant and six hotel bedrooms at 18 Highfield Road, and the car park on the same land.
The 20-space car park costs the brothers up to £20,000 a year to lease and they fork out business rates on the Calthorpe Estate.
Darren, of Kenilworth, said: “The hotel is shut, but Birmingham City Council is telling me it’s a car park business. I don’t have a car park business. They say you can still charge as a business, but we can’t as we’re shut.
“I feel penalised. What am I meant to do? I have a shut hotel and a shut business and these people are telling me I have an operational car park business.
“It makes me feel sick. I’m so disturbed as I have no income – it’s ridiculous.”
“I’ve managed to survive almost a year in lockdown and now I’m getting Birmingham City Council passing me onto debt collectors.”
The case went to Birmingham Magistrates’ Court where the pair were found guilty of non-payment of business rates.
They have been given the option of paying £895 per month of the £5,680 bill, but plan to appeal the decision.
A Birmingham City Council spokesman said: “Whilst we appreciate that it is an immensely difficult time for businesses, we are doing everything we can to deliver much needed support through provision of grant payments.”