How could a local council use its powers to lower rents for independent businesses?
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Independent businesses operate at a disadvantage to chains, as their overheads are larger and they tend to have smaller turnover. How can a local council use existing legislation to protect them – rent ceilings? Zones where only independents can operate? Ideas welcome.
They can’t … although many attempts have been made to miss-apply existing legislation to conduct some sort of ‘social engineering’ (i.e. FORCE people to act in a way that ‘"We Know Is Good For You")
However, whilst the ‘local villagers’ complain bitterly about eg. closure of local branches (Bank, Post Office), Pubs and ‘corner shops’, the unfortunate fact is, the majority DID NOT actually make use of those facilities – instead they drove to the nearby town Supermarkets and Shopping Centers instead ..
Indeed, many village dwellers have done their very best to to ‘kill off’ their own local businesses by opposing expansions, refurbishments and opening hour extensions and implementing local parking & speed restrictions + ‘bumps’ & camera’s that discouraged or (by supporting the building of a bypass) eliminated the ‘passing trade’ … and (of course) local councils have driven the final nails into the coffin of local business by extorting astronomical ‘Business Rates’
In any event, Government (and ESPECIALLY local government) should NOT interfere with business = decades of local & national spending mismanagement have proven time and again that Government has NO IDEA how to conduct any sort of commercial business operation ..
Leave well enough alone .. if there is ‘money to be made’ local shops will thrive .. if not, the properties will be converted to some other, higher demand, use ..
It’s the greedy Landlords who are at fault. Rent is charged on the overall value of the building. Ours went up hugely due to the property boom. Rents are not taken into consideration of turnover. It’s a Government problem not the Councils.
References :
You are suggesting government set a max rent level? The landlords have a product (space for rent) that they want to sell (rent). You are saying the government should tell them how much they are allowed to "sell", right?
Ok, what if that same government does this but then also tells the shoe store that rents in a building that they are only allowed to sell 20 pair of shoes per month and that the price can’t exceed $20 per pair of shoes? Not fair? Then how is it fair to force the landowner to rent at a lower than market value rate? It’s not the property owners fault that the businesses that rent space can’t compete with the big boys, so don’t suggest punishing them.
Your other suggestion of exclusive zones is not uncommon. Lots of small towns try to preserve their historic areas by preventing chains from moving inside the main street areas. But governments will only go so far because they will lose tax revenue if they are overly heavy handed.
References :
They can’t … although many attempts have been made to miss-apply existing legislation to conduct some sort of ‘social engineering’ (i.e. FORCE people to act in a way that ‘"We Know Is Good For You")
However, whilst the ‘local villagers’ complain bitterly about eg. closure of local branches (Bank, Post Office), Pubs and ‘corner shops’, the unfortunate fact is, the majority DID NOT actually make use of those facilities – instead they drove to the nearby town Supermarkets and Shopping Centers instead ..
Indeed, many village dwellers have done their very best to to ‘kill off’ their own local businesses by opposing expansions, refurbishments and opening hour extensions and implementing local parking & speed restrictions + ‘bumps’ & camera’s that discouraged or (by supporting the building of a bypass) eliminated the ‘passing trade’ … and (of course) local councils have driven the final nails into the coffin of local business by extorting astronomical ‘Business Rates’
In any event, Government (and ESPECIALLY local government) should NOT interfere with business = decades of local & national spending mismanagement have proven time and again that Government has NO IDEA how to conduct any sort of commercial business operation ..
Leave well enough alone .. if there is ‘money to be made’ local shops will thrive .. if not, the properties will be converted to some other, higher demand, use ..
References :