This week’s Centre for Cities report confirms what businesses already knew, Cambridge has the highest business rates outside of London and because of this, did poorly in the original Covid government grant schemes.
The Centre for Cities categorises sixty UK cities into stronger and weaker, broadly stronger cities like Cambridge, are those with a productive business sector, more of a cultural offer, are usually more affluent and have a better dining and leisure offer. Whilst much of this is true, stronger cities fared worse during lockdowns because more of their businesses were closed, whereas weaker cities that have a third more essential shops profited since these remained open. Cambridge also suffered more of an impact from the work from home guidance because a higher percent of our jobs could be performed from home thus losing that vital footfall and spend.
Pre Covid the Cambridge vacancy rate was towards the lower end of the UK average at under 10%, more productive and affluent cities like Cambridge can support a more diverse high street offer. Even though the pandemic has been very tough for the high street a recent audit by Cambridge BID suggested by this summer our vacancy rate will return to pre pandemic levels and demand for quality retail space remains good.
Business rates are a regressive tax. Government grants were capped so businesses with a rateable value over £51,000 got nothing in the original Covid Grant scheme. You may think this is because many of these are larger businesses who can support themselves. This is untrue, in Cambridge where business rates are high, it included many small independent businesses on Kings Parade, Trinity Street and other city centre streets. So in weaker cities, often with much lower business rates than Cambridge, unfairly a much higher percent of businesses received the original Covid grants.
This week as more restrictions are lifted and the need to wear masks is removed, I for one will continue to wear a mask in busier locations and I would encourage others to do so, as well as wash our hands regularly, ventilate shared spaces and respect social distancing.
