High business rates could lead to a coffee shop closure, its owner said. Joe Ingleton, who has runs Fueled Coffee in Uttoxeter for four years, said his business rates had more than doubled. "We charge £3.40 for a coffee and I don't think they realise how many coffees I have to sell to get that covered before I start with the wage, rent, electric bills," he said. He said he wanted more support from East Staffordshire Borough Council. The council said the government in recent tax years had set the Retail, Hospitality and Leisure (RHL) relief at 75% of the business rates bill, but the level of relief had been reduced to 40%. He said he previously paid £3,243 in business rates charges but his bill for 2025/26 increased to £7,784. "I can't carry on with these high [business] rates," he told BBC Radio Stoke. "Sometimes I feel sick, I cant sleep, I just want to stay indoors and its not motivational at all. "The council say it's for small businesses, this is their chance to stand up and say its wrong." Mr Ingleton said he was passionate about the community and his business but found the current business rates were affecting his mental health. A council spokesman said the increase in business rates was due to government providing RHL businesses with a relief on their business rates charges over the last few years. "In 2023/24 and 2024/25 tax years the RHL relief was set by the government at 75% of the business rates bill," they said. "However for the 2025/26 tax year the level of relief has been reduced by the government to 40%." Follow BBC Stoke & Staffordshire onBBC Sounds,Facebook,XandInstagram.
Coffee shop could shut over high rates, owner says
TruthLens AI Suggested Headline:
"Coffee Shop Owner Warns of Closure Due to Rising Business Rates"
Bbc News
7.7
TruthLens AI Summary
Joe Ingleton, the owner of Fueled Coffee in Uttoxeter, has expressed grave concerns over the potential closure of his coffee shop due to the dramatic increase in business rates. Ingleton has been operating his establishment for four years, and he revealed that his business rates have more than doubled, jumping from £3,243 to £7,784 for the 2025/26 tax year. He highlighted the financial strain this places on his business, stating that the price of coffee, which is currently set at £3.40, does not adequately cover the mounting costs associated with wages, rent, and utilities. Ingleton is calling for increased support from the East Staffordshire Borough Council, feeling that the council's measures to support small businesses have not been sufficient in light of the rising costs. He conveyed his emotional distress regarding the situation, indicating that the stress from these financial pressures has adversely affected his mental health, making him feel unmotivated and anxious about the future of his business.
The East Staffordshire Borough Council has responded to Ingleton's concerns by explaining that the increase in business rates is tied to changes in government policy regarding the Retail, Hospitality and Leisure (RHL) relief. In previous tax years, this relief was set at 75% of the business rates bill but has been reduced to 40% for the upcoming 2025/26 tax year. The council spokesperson emphasized that this reduction is a result of government decisions aimed at adjusting the relief for RHL businesses. Despite this explanation, Ingleton remains frustrated, arguing that the council must advocate for small businesses more effectively, especially during challenging economic times. He remains passionate about his coffee shop and its role in the community, but the current financial climate poses a significant threat to its continued operation.
TruthLens AI Analysis
The article highlights the challenges faced by small business owners in the current economic climate, particularly focusing on the coffee shop owner Joe Ingleton. It reveals the drastic increase in business rates that has put his establishment at risk of closure. This situation reflects broader issues within the hospitality sector and raises questions about governmental support for small businesses.
Impact of Rising Business Rates
Ingleton's experience illustrates the burden of rising business rates on small enterprises. His business rates more than doubled from £3,243 to £7,784, which he argues is unsustainable. This significant increase in operational costs can lead to closures, which exemplifies a systemic issue affecting many small businesses, particularly in the hospitality sector.
Mental Health Concerns
The article touches on the mental toll that financial pressures can exert on business owners. Ingleton expresses feelings of stress and anxiety, indicating that the financial strain is not only an economic issue but also a personal one. This aspect may resonate with many small business owners who are facing similar challenges, potentially fostering community support or sympathy.
Government's Role
The piece discusses the government's response to business rates, specifically the reduction of Retail, Hospitality and Leisure (RHL) relief from 75% to 40%. This change is portrayed as a direct cause of the heightened business rates that Ingleton faces. The article may be aiming to provoke public criticism of governmental policies that negatively impact small businesses, urging for more substantial support and relief measures.
Community Engagement
Ingleton's passion for his community is emphasized, suggesting that local businesses play a crucial role in community well-being. This sentiment can mobilize public support for local businesses, enhancing community ties and encouraging individuals to advocate for favorable policies.
Potential Economic and Political Consequences
The challenges faced by small businesses like Fueled Coffee could lead to broader economic implications if not addressed. A decline in small businesses can affect local economies, employment rates, and community cohesion. Politically, this situation may compel local councils and the government to reconsider their policies regarding business rates and support for small enterprises.
Target Audience and Support Base
The article seems to target local communities, small business owners, and policymakers. By highlighting the struggles of a local coffee shop, it aims to evoke empathy from the community and encourage advocacy for better support systems.
Market Implications
While the immediate impact on stock markets may be minimal, the broader narrative around small business struggles could influence investor sentiment towards sectors reliant on small enterprises. Companies involved in retail and hospitality may feel the ripple effects if public sentiment shifts towards supporting local businesses.
Relevance to Current Issues
The issues raised in the article are relevant to ongoing discussions about economic recovery post-pandemic and the support needed for small businesses. The focus on local establishments reflects a growing trend of valuing community and sustainability in business practices.
Use of AI in Reporting
There is no clear indication that AI was used in the article's writing. However, if AI-generated content were involved, it might have shaped the narrative to emphasize certain emotional responses or community engagement aspects, perhaps steering the article towards a more sympathetic portrayal of small business challenges.
In conclusion, the article serves to highlight the critical issues surrounding business rates and their impact on small enterprises, aiming to mobilize community support and prompt governmental action. The reliability of the information seems sound, based on the personal account and the cited changes in government policy regarding business rates. The emotional appeal and focus on community engagement further enhance its credibility and relevance.