THE founder of an eco-friendly Aberdeen store says a “shocking” rates assessment revision has put the future of her business in doubt.
Gina Adie opened Refillosophy in the west end of the city just over two years ago to provide a modern-day retail experience with plastics-free shopping, local produce, recycled products and the re-use of containers where possible.
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Previously Gina’s store on Albyn Grove, which employs five part-time workers, came under the £15,000 small business rate relief threshold so faced no rates payment obligations.
However, under the terms of the new draft assessment arrangements announced this week her proposed rateable value (RV) is now £18,750 – above the £18,000 threshold for 25% relief. The new figure means she is now liable for 49.8% – £9,337.50, from April 1, 2023, as things stand. A final rates bill will be dependent on any changes to the ‘poundage rate’ set by the Scottish Government.
Gina said this new figure is causing her undue stress and she has concerns about the survival of her dream business venture. She is exploring various options including an appeal.
Gina said: “I’m extremely disappointed with our new rateable value – in fact I’m furious about it.
“We simply hadn’t factored such a high additional cost into our business budgeting. What are our options: putting up our prices, laying off staff or – the worst-case scenario – closing a shop we’ve worked so hard to establish? I find it shocking and extremely frustrating when we keep hearing we want local shops and the city centre to flourish, yet it seems to be increasingly difficult for this to happen.
“The rates system is archaic. It’s not fit-for-purpose due to the changing business landscape. With online shopping, we are competing in a difficult world. We should be encouraging smaller local firms into the city centre. Overnight we’re now facing a bill of more than £9,000.
“Someone said I should move to somewhere like Westhill where we may pay less rates. I walk to work as do my staff. A move out of town would involve car travel and that goes against our ethos.
“The whole point is that we are an eco-friendly business with sustainability at our core. Perhaps this should be considered in a forward-thinking rates assessment – one that looks into what we are trying to do. I felt we were getting back on our feet after the Covid-19 pandemic but now this. I’m not sure what to do to be honest.”
Gina has fostered a community spirit with fresh local produce, products and billboards promoting local events. The mum-of-two has been making the effort to be more environmentally friendly since her first child was born 19 years ago, when she chose to buy reusable nappies and baby wipes.
The store offers plastics-free shopping and eliminates the use of other types of environmentally unfriendly packaging. The 650 sq ft zero-waste shop is the largest of its kind in the city and has a loyal following. Customers can pick their coffee beans, loose tea, bakery products and fresh fruit and vegetables and other produce from Refillosophy’s shelves.
Refillosphy’s team of five part-time workers are all happy to work flexible hours that suit personal circumstances.
Business rates are calculated by multiplying the rateable value (RV) of a property by the National Poundage Rate. The RV is set by a local assessor and the poundage rate set by the Scottish Government. Rates bills can be paid in monthly instalments.
