CONCERN is being expressed over business rate increases that could threaten the future of rural enterprises such as cattle marts.

Business rates are based on a property’s rentable value and the government is reviewing the amounts charged.

This could lead to hefty increases in rates particularly for many long-standing businesses such as cattle marts with a large property footprint.

This week the chairman of Hawes Auction Mart, Andrew Pratt spoke out against the hikes, saying that they represented “another nail in the coffin for rural businesses”.

Stephen Walker, manager of Leyburn Auction Mart, said it will be hard for rural businesses to find the extra money.

“We are all in the same boat I believe, but to what extent I don’t know yet,” he said. “I know our rateable value is probably going to double.

“Auction marts run on very small margins, maybe with a 3 per cent commission, which doesn’t go very far particularly if one of your major costs is going to double.

“It is going to impact on us greatly.”

Mr Walker also pointed out that a thriving auction mart also benefits nearby businesses so they are an important wider contributor to local rural economies.

Giles Drew, auctioneer and manager at Northallerton Auctions Ltd, has contact his local MP, Rishi Sunak, over the issue.

He said that the government needs to find a new way to value businesses so that huge increases are avoided. “We are already paying a lot of money in rates and it’s only going to get worse,” he added.

Mr Sunak, MP for Richmondshire, is looking into the matter and is speaking to ministers about the impact rate rises will have on rural businesses in particular.

The CLA (Country Land and Business Association) is also meeting with officials to express concern over rate increases.

CLA Director North, Dorothy Fairburn, said: “The CLA is acutely aware of the problems being faced by many rural businesses – not just auction marts – by this revaluation for business rates.

“Our Chief Surveyor in London is meeting with staff from the Valuation Office Agency to challenge them on their justification for these unprecedented increases.

“The closure of auction marts – which might have high turnovers, but produce only small profits – would have serious repercussions on the viability of livestock farming in the North of England.”