Council supports motion to help North Northamptonshire businesses survive and grow

“We’re supposed to be a nation of shopkeepers, but I don’t think we are anymore,” Tony Bagshaw, who owns Kafe Bloc in Kettering town centre, told the Local Democracy Reporting Service.

He opened the independent coffee shop nearly 13 years ago, expanding into a deli and grocery business stretching across multiple units following lockdown, before he was forced to downsize and offer everything under one roof once again in 2024.

He said the decision was partly down to the looming rise in business rates and employers’ national insurance contributions, which he said already left him feeling ‘pretty bruised and clobbered’.

A motion that went to a meeting of North Northamptonshire Council (NNC) last week has acknowledged the burden of business rates and employers’ national insurance contributions.

It explained that this was restricting local business growth and discouraging the creation of new enterprises across its towns.

The council has now agreed to engage with local MPs to raise the concerns with the Government, write formally to outline the scale of the challenge and impact on North Northants and review the ways in which it can help businesses directly.

A HM Treasury spokesman says it is a ‘pro-business government’ and intends to introduce permanently lower tax rates for retail, hospitality, and leisure properties from next year.

‘I’m now back to where I started’

Speaking about the impact it had on his business, Tony added: “It stops you trying to grow. I’m now back to where I started, I’m back in a small unit again where I’m paying no business rates.

“Downsizing really came from me deciding that I was done with lining the government’s pockets and not my own. The bottom line is I’m probably no worse off, but I’m working 30 hours a week instead of 70.”

He said that the snug unit is still vibrant and busy and offers the best bits of both the deli and cafe, but that he is now able to run it with a smaller team of staff.

The cafe owner reflected: “At first, you think have I failed at this, because you do look at what you’re doing and you get a lot of your self-esteem from what you achieve. I’d expanded, I’d made this lovely place for all of the people of Kettering to come in, and then I had to downsize.

“I’m happier now that we’ve done it, but I still feel aggrieved that the main reason was because of all of the different ways we were getting hit with taxes.

“I want to be taxed on profits that I make, not simply being in existence. If we create an environment where small independent businesses can thrive, then they’ll take a punt.

“That’s the only thing I think that is going to save town centres now.”

‘We got to the point where there was nothing else we could do’

Another stalwart of local businesses in Kettering, Jamie’s Quality Butchers, has also said he’s had to quickly adapt to rising business rates and inflated costs over the years.

The high street butchers recently made the decision to close on Sundays from October 1, after 19 years of trading seven days a week, in an attempt to save on wages, electricity and other running costs.

Jamie Cooper, who runs the butchers, said: “When it all kicked off last year and businesses had to lay people off and cut hours it was heartbreaking. So, I refused to do that, I made the choice to lose profit and to this day we’re still feeling that now.

“I was taught by my mentor, and I carried it on, that we look after our own staff and customers. The one thing we try to do is give staff as many hours and as much money as possible so they can have better lives.

“It broke my heart [making the decision to close Sundays]. There’s only so much you can do, and we got to the point where there was nothing else we could do. That’s the sacrifice we’ve had to make now.”

He added that it was new business owners who didn’t have a wealth of experience that he felt the most sorry for.

Jamie asked: “What help does a business get? It’s just too many outgoings and not enough income.

“There’s a build-up of a lot of things going on for business owners. Years ago, you used to see people down [the high street] walking around, but you don’t anymore.

“Someone needs to look at the actual problems and how they can be solved and go back to basics.”

Concerns were also raised by multiple traders about the decline of town centres more generally. They pointed to issues with expensive parking fees, people not feeling safe to go into town because of shoplifting and anti-social behaviour, as well as there being an oversaturation of certain business with no proper control over what is needed within the town to attract people in.

‘Make sure that these voices are heard’

Proposing the motion at full council last Wednesday (September 3), Cllr Emily Fedorowycz (Greens, Kettering North), said that the region’s high streets were seeing the impact of business rates and employers’ national insurance contributions through more ‘boarded up units, reduced footfall and a loss of confidence’.

She said: “We have some proactive, amazing business owners in our town centres that want to expand and want to keep our towns vibrant, but they’re unable to do so because they’re literally disincentivised to do so.

“Hopefully, we’ll really show business that we are listening. Let’s take some of these views forward to central government and make sure that these voices are heard.”

Cllr Graham Cheatley (Reform UK, Kingswood), who is NNC’s executive member for finance, joined with the local Greens to second the requests.

He said: “These financial pressures are having a real and damaging impact on our high streets and town centres and the broader local economy.

“Business rates are only one part of the problem. Other factors include energy costs, staffing pressures and changing consumer habits. There is still a need for urgent and targeted support.”

A HM Treasury spokesman said: “We are a pro-business government that is creating a fairer business rates system to protect the high street, support investment, and level the playing field.

"To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure properties from next year.

“The tax decisions we took at the Budget last year mean that we have been able to deliver on the priorities of the British people, from investing in the NHS to cutting waiting lists and putting more money in their pockets with a wage boost for millions as we deliver on the Plan for Change.”

‘High Streets are the beating hearts of our towns’

An NNC spokesman said: “Our High Streets are the beating hearts of our towns, and we’re committed to do what we can to increase their vibrancy and prosperity.

“Boosting businesses helps keep communities thriving. Our flagship Hi Street campaign has played a key role in raising the profile of our town centres, particularly in Kettering which is one of our major hubs.

“A big part of its success has been the close collaboration with local businesses and retailers, whose response has been fantastic. These partnerships are vital in helping to raise the profile of our town centres, and we are always open to working with more local businesses to build on this momentum.

“Recently, as part of this campaign we had a Kettering street art project, where we worked with local talent to support local businesses and the wider community by creating spaces that are vibrant and welcoming.

“But it’s not just promotional campaigns – we have worked in partnership to deliver a support programme for independent businesses, including mentoring, training and practical advice.

“Earlier this year it was also announced that the council, alongside eight other councils across the country, had been selected by Government to take part in a pilot scheme designed to reduce the number of empty retail units. Further detail of this will be revealed later this year.

“This builds on the success of our multi-million-pound Heritage Action Zone collaboration with Historic England to revitalise parts of Kettering town centre to improve the look and feel of the town’s street scene and showcase all it has to offer.”