The owners of a small family business have spoken of the loss they felt after realising they will have to leave their headquarters at the end of the month, as a result of uncertainty over business rates, and rising operating costs.
Giles and Jodie Stagg, the husband-and-wife team behind Stratford-based mobile bar company Sip ‘n’ Swig, will be forced to move their business to a much smaller storage unit due to rising business rates, what they believe to be an incorrect valuation of their premises, and a lack of clarity over what they will have to pay in the coming financial year – alongside increasing costs more generally.
The couple, who have two sons, aged 3 and 7, say that this means they will no longer be able to host their much-loved community events – ranging from candle painting to pop-up pubs – and will have to start working weekends again.
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Giles said: “The whole idea of having a unit was that we were trying to make it a usable space so we weren’t working all hours at weekends; we’ve got two young kids, so we want to spend some time with them.
“It’s just less family time.”
After a recent revaluation, the government’s online calculator suggested that the company’s business rates could rise to £900 in the next fiscal year – up from £500 in 2025/26, and £230 in 2024.
However, these rates have not been confirmed, nor have the couple had any insight into whether they would be eligible for any relief, they say.
They will be forced to move to a smaller premises
Believing the valuation to be incorrect, the company formally submitted a ‘check’ to the Valuation Office Agency (VOA), and after seven months the valuation was revised slightly downwards.
However, maintaining that the number is still too high, the business is being forced to submit a formal ‘challenge’ to the VOA, which could take a further 12-18 months.
Giles said: “We don’t feel like we should be paying anything because we believe we should be under rateable value, so we’ve already paid our two and a half years worth of business rates, which is what we were appealing to start with before it even went up.
“We’re told everything is about trying to help small business and then they just put blockers in like this, which does not help small business at all.”
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Sip ‘n’ Swig has been operating since 2017, and their current headquarters was their first business premises.
Manuela Perteghella, MP for Stratford-on-Avon, said: “I hear so much from hospitality businesses who are trying hard to keep their businesses afloat because of the many pressures they face.
“Business rates are a significant fixed cost. The reduction in rates was a temporary measure to help businesses recover, but in many ways, the industry has not had a chance to because the cost-of-living crisis has had such an impact on profit margins.
“People are spending less because they have less to spend. Sadly, the hospitality and tourism industry are paying a heavy price for the fact that people’s household bills have gone up so much.
“Increasing costs are something that businesses must budget for, so receiving business rate bills just weeks before those rates come into effect is not sufficient notice for small businesses who need to be able to plan.
“The government must reform the business rates system, and in the meantime, businesses should get targeted support.”
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