Dunne: Ministers challenged over threat to filling stations

Pressure is mounting on the Government to recognise its flawed Business Rate revaluation could force hundreds of independent petrol retailers to close or cease selling fuel.

Around 500 independent filling stations have closed each year since 2005 and the remaining 2200 in rural areas are threatened with closure.

Rateable value increases of up to 450 per cent have been reported by filling stations as a result of the Valuation Office Agency's (VOA) revaluation which comes into force in April 2010.

Ludlow MP Philip Dunne met Government Minister, Barbara Follett MP last month and again this week met her official to express his concerns, to provide evidence of the likely impact and to ask the minister to postpone the revaluation until next due in 2015.

Mr Dunne said:

"It is quite clear from the wide range of evidence I have received from all over the country that this revaluation will cause many filling stations to suffer increases in rateable value far higher than is reasonable. Hundreds will see their business rates bills more than double over the next few years, many of these will cease selling fuel or close.

As the country struggles to get back on its feet this is yet another blow to small businesses. It will particularly hit rural people, who are so reliant on their cars, and the independent filling stations which provide their fuel."

The Chairman of the Independent Petrol Retailers Association (RMI Petrol) Brian Madderson took its case to Ludlow MP Philip Dunne who has been campaigning to save rural filling stations. Mr Madderson said:

"It was extremely helpful to have support for this challenge to the VOA from an MP with such a grasp of the serious issues at stake. It is hoped that many other Members will be appalled at the potential impact on rural communities and also voice their concerns to the Government."

John Corbo of Ford Service Station, Much Wenlock in Mr Dunne's Ludlow constituency,said:

"We've seen a 250 per cent increase in the rateable value of our premises which is absolutely horrendous at a time when sales and margins are in the teeth of the economic recession. I am very grateful for the support of our local MP for pursuing this so tenaciously."

Mr Dunne has also sponsored an Early Day Motion in Parliament which immediately attracted cross-party support, including from Labour backbenchers. EDM 684 calls on the Government to postpone the business rates revaluation for petrol filling stations.

Photo: Philip Dunne with John Corbo at Ford Service Station, Much Wenlock