‘Amazon and rates’ kill off Battersea bookstore

 
p28 Much loved independent bookshop closing down on Northcote RoadÖ Michael Gibbs, the owner of the Bolingbroke Bookshop Ö.. Pic: Alex Lentati
Alex Lentati
4 February 2013

The owner of an independent bookstore has blamed a “scandalous” rise in business rates and cut-throat competition from Amazon for forcing him to close after more than 30 years.

Michael Gibbs, who runs Bolingbroke Bookshop in Northcote Road, Battersea, said: “The Government gives lip service but in reality has done nothing to help small businesses.” He expects to close the store, established in 1982, in the coming weeks when all the stock is sold. Gibbs said his business rates had risen from £3,600 in 2009 to more than £15,000 last spring.

He said: “I can’t keep suffering these rises in rates and a fall in trade due to Amazon’s Kindle.” The online giant has posted figures showing its global sales rose by 22 per cent, to $21.27 billion, in the fourth quarter of last year alone, with ebook sales up 70 per cent.

Amazon paid only £1.8 million tax on £3.35 billion revenue in the UK in 2011. The increase in rates paid by Mr Gibbs partly reflects the rising value of commercial property in Battersea. Rateable value is reassessed every five years.

In addition, the Government imposes an inflation-linked rise each year, using the previous September’s Retail Prices Index as a measure. The British Retail Consortium estimates that the planned 2.6 per cent rise in rates from April will add £175 million to retailers’ costs.

Mr Gibbs also said the rateable value of his store was too high for him to qualify for small business rate relief. The British Retail Consortium called on ministers to freeze business rates for this year, and change the measure used for the inflation-linked rise to the Consumer Prices Index, which is typically lower than RPI.

The Government’s Valuation Office Agency said: “If a ratepayer feels the rateable value is not a fair reflection of the rental value, they can contact us to review it. Visit www.voa.gov.uk/valuation.”

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