Weathering the Economy
Contraction of the economy was, according to The Chancellor, `due to it’. Supermarkets have blamed their flat sales on it , Ryanair claims some of its losses are due to it and Greene King Sales were down because of it. The bad weather seems to be the reason many are citing recent decline in business, however, looking at GK’s January upturn it would appear from their indicator that we’ve all had enough of being inside, and are heading out. The upturn will be interesting to watch for offsets in other areas of business. Meanwhile, Tesco-nopoly continue munching onwards – They’re trying out a cash for gold service and have launched a tyre fitting service too.
Speaking with Residential Landlords it would seem that an area of concern following that highlighted towards capital gains, at the start of the year, is tenant arrears and its effect. When tenants are struggling to maintain their payments the effect for the landlord, in terms of annual returns, is for their long term profits and consequent re-investment. Astute Landlords having prepared themselves in anticipation of the see-saw economics and challenges, and have laid down plans. This collective of professional landlords, have throughout, introduced new business models to assist them through any changing times and ensured continued success within their business. There are however less experienced landlords who may not have the ability, or facilities, to cope through the ongoing changes. This will, in turn, have longer term effects for both landlord and tenant as the laws of supply-and-demand continue to play out. Whether minor or major issues, the responsibilities of being a Landlord require planning ahead for both the sake of both tenant and Landlord. For example, it would appear that some landlords haven’t yet prepared for the digital switchover process. Fiscal challenges might likely seem that everything is going backwards but the likely consequences of stalling a tenant’s access to their TV might, by comparison, make such difficulties a walk in the park on a summer’s day.
Commercial Landlords are facing extra bills as from April when the Empty Rate Relief is to be rescinded. It was the previous Government’s belief that by scrapping the 50% relief from business rates, for owners of empty retail and office space, and the 100% relief for warehouse and factory owners, they would encourage regeneration in towns and cities, because as tenants moved out, redevelopment would occur to attract new business, and avoid paying rates on empty property. However, soon after empty rates were imposed, the recession struck and demand from businesses for new commercial space collapsed, landlords were left with both loss of rent and empty rates bills. It is the then Government’s response of making an exemption for those with rental income of below £18,000 which is to be rescinded by the current Government. April also sees a rates supplement in Scotland. A Large Retailer Levy is the Scottish Government’s proposed rates supplement for retailers with a rateable value of £750,000 or more. The tax increase, dubbed Tesco Tax, has incensed those affected and has yet to be voted on.
Meanwhile, following the withdrawal of public funding, founders the CBI, along with the Institute of Directors, the British Chambers of Commerce, the Federation of Small Businesses and chair Peter Jones have voted that the charity Enterprise UK is to close from April.
(Image and Article credit: Copyright SUF)