Business rates battle of Peterborough's community retailer venture UNITY to go to House of Commons

The plight of Peterborough’s community retail venture UNITY which has been hit by a ‘shock’ £26,000 business rates bill is to be raised in the House of Commons.

Peterborough MP Andrew Pakes has vowed to highlight the struggle facing the award-winning UNITY, based in the Queensgate Shopping Centre, after its founders were told their collaborative project that supports those who cannot afford their own shop, did not qualify for charity status which would have meant a zero business rates bill.

The decision to reject the business rates charity-status bid was made by Peterborough City Council.

Now Mr Pakes says he will take retail venture’s fight to the House of Commons to underline the urgency of a reform in business rates.

He said: “This underscores the need to reform business rates so that they focus on the big end of the market, such as internet retail, rather than shops like UNITY.

"I’ll be raising the case of UNITY in the House of Commons to help speed up business rates reform.

“I have also asked the council to look again at business rates charity relief, the rules are strict for charities.

"And I have pledged to work with the team to encourage more Peterborough businesses to get behind them.”

He added: "Up The Garden Bath and UNITY are tremendous assets for the city and do an incredible amount to back small traders, make us more sustainable and bring a smile to us all.”

UNITY’s business rates bill should total £40,000 but it is entitled to a discount which reduces the amount owing to £26,000.

But co-founder Dave Poulton said that for some time he had been led to believe that UNITY would be entitled to charity status meaning its business rates bill would be zero.

He said the failure of the charity status application was a shock.

He said: “We have no choice but to accept the decision.

"At the moment it’s a choice between paying the rates or letting some people go. The £26,000 is the cost of two jobs.”

Councillor Mohammed Jamil, cabinet member for finance and corporate services at Peterborough City Council, said: "The UNITY shop is being operated primarily as a retail outlet selling various craft and artworks on behalf of local artists.

"It is a fabulous addition to our city centre and one which I know is very popular with shoppers.

“Entitlement to charitable rate relief is set in legislation and this business is not legally entitled, because it is not selling items that have been donated to it.

"We have, however, awarded the store business rate relief which has reduced their contributions by 75 percent for 2024/25.

“Our business rates team are always happy to speak to businesses about possible plans and potential reliefs before they start operating.”

UNITY, which is part of the recycling venture Up The Garden Bath, launched a year ago and provides a place for more than 50 small businesses, including crafters, artists, makers and start-ups to sell their goods.

It has raised about £370,000 for small businesses and seen 30,000 transactions ring through the tills.