CORNWALL Council will consider a motion next week which highlights the damaging impact “disastrous” business rate changes will have on retail, hospitality and leisure sectors in the Duchy.
The motion has been proposed by Mevagissey and St Austell Bay Conservative councillor James Mustoe, who said: “In the Autumn Budget, the Chancellor announced a change to how business rates – the tax on commercial properties – will be calculated.
“This means rateable value of some properties will increase significantly: by 76 per cent for accommodation businesses, 30 per cent for pubs and 14 per cent for restaurants and cafés.
“As an example, based on research done, two pubs in one community I represent will see their business rates go up from £5,900 up to £10,000 and £29,500 up to £67,000. A huge increase.
“This is not unique to this community and with some rates more than doubling, it is easy to see a scenario where we will have mass closures of these businesses before long.”
Cllr Mustoe’s motion calls upon the Liberal Democrat leader of Cornwall Council, Cllr Leigh Frost, to write to the Government in opposition of the changes and propose a number of changes which will lessen their impact on the retail, hospitality and leisure sectors which are so important for Cornwall.
It also asks for a full impact assessment on these changes to be completed by the council, and that the council publish guidance on how businesses can be supported through them.
“Ironically, since I submitted my motion on January 5, it has already been rumoured that the Government is contemplating U-turning on some or all of its measures,” added Cllr Mustoe.
“While they have not decided what to do yet, I will be doing all I can to highlight this damaging issue and hope that Cornwall Council will vote to support my motion on January 20 and add its voice to supporting our retail, hospitality and leisure businesses at this difficult time.”
Cllr Connor Donnithorne, leader of the Conservative group on the council, responded to the motion: “Running my own fish and chip shop in Wadebridge, I know just how important the retail, hospitality and leisure sector is for Cornwall. It’s social value is just as important as what it contributes for our local economy.
“Cafés, pubs and restaurants are places for friends and family to get together and is a vital link for those facing isolation and loneliness in our rural and coastal communities. This Government just doesn’t get small business in a place like Cornwall.
“If they go forward with their disastrous business rates tax hike, it will kill off our high street and local economy – with the job losses and empty shops that come with that. We are asking Rachel Reeves to think again.”
Cllr Mustoe’s motion has been seconded by fellow Conservative councillor Martyn Alvey and supported by Conservative Cllr Karen Glasson and Cllr Rowland O’Connor and Cllr Rob Parsonage, members of the Cornish Independent Non-aligned Group.

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