The new scam on the block targeting Manchester’s small businesses
‘They started to be aggressive, shouting at me down the phone’
Dear readers — Carmelo and Chiara Signorelli arrived in Manchester in 2019 in search of a new beginning. They opened Bar Etna, a small Italian restaurant in Altrincham, last year and things had been going well, but they were keeping an eye on their outgoings. Soon after they opened, a business rate agent turned up at the door with an unusual offer. He claimed he could cancel their business rates bill altogether, and all they had to do was pay an upfront fee. It seemed almost impossible, too good to be true. That’s because it is.
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The new scam on the block targeting Manchester’s small businesses
By Mollie Simpson
In June last year, Carmelo and Chiara Signorelli, the owners of Bar Etna, a small Sicilian restaurant in Altrincham, had an unexpected visitor. A smartly-dressed man in his 50s arrived unannounced bearing good news. He could cut them a much better deal on their business rates.
The couple had moved to Manchester from Sicily in 2019, with a dream of setting up a restaurant together. They managed to open last summer, and were doing well. When we met across an empty table in the restaurant in May, Chiara balanced their toddler Nicholas on her hip, stroking his dark curls, while their daughter Rebecca sat across the room, quietly reading a book. After our conversation was interrupted by calls from suppliers and people wanting to reserve tables, Carmelo made me a strong black coffee and we talked about the stresses of running a small business.
When they opened, like any small business in the hospitality sector, the line between profit and loss was wafer-thin, so they kept a keen eye on their outgoings. That included business rates.
Business rates are a type of council tax for business premises, calculated by the Valuation Office Agency and paid to the local council. Carmelo and Chiara thought they had already received the maximum possible discount under the government’s rate relief policy to help small businesses: a whole 75% off. But the agent promised he could go further. All they had to do was sign a contract with his company, Rateable Value Experts, and pay £700, plus VAT.
“I remember him saying, your business rates will be reduced, probably even cancelled,” Chiara recalls, her voice angry. Then, the agent gave the ultimate reassurance: if he couldn’t secure them a discount, they’d get all their money back.
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