Retail Property - Bath traffic ban forces rate rebate

More than 300 retailers in Bath will receive a 3.75 per cent reduction in business rates because of the impact of the city council's Bus Gates traffic scheme on trade.

The rebate will be backdated to April 2001, when the scheme, which bans private vehicles from most of the centre during the day, was introduced.

The deal was agreed between the Valuation Office Agency and surveyors acting for the retailers, led by Jeremy Bailey, business rates partner at King Sturge's Bristol office.

It is believed to be the first time the Valuation Office Agency has accepted traffic management measures as a valid argument for rebates. Bailey predicted that the agreement will be used as a precedent for appeals elsewhere, such as Oxford, Cambridge and London.

Additionally, in a test case in London, rating agents led by GL Hearn are seeking a 15 per cent reduction for two years from September 11, 2001, on behalf of retailers occupying more than 20 shops in New Bond Street because of the decline in tourist trade.

Blake Penfold, joint head of rating at GL Hearn, said more than 1,500 similar appeals by retailers in central London awaited the decision by the valuation tribunal. Rebates could run to several million pounds.