WHAT impact will the CHORD work in Helensburgh's town centre have on the rates paid by local businesses?

One local councillor, who sits on the area's valuation board, says they could go up by a "considerable" amount - but another insists it's more likely they'll actually go down.

Richard Trail, who sits on the Dunbartonshire and Argyll and Bute valuation joint board, told a conference of Helensburgh retailers at the Victoria Halls: “The assessor, David Thomson, and his team assess each business's net annual value – their assessment of a reasonable market rent – once every five years.

“The last time the rates were revalued was in 2010. The latest revaluation has been delayed, but the new valuation roll will come into effect in April 2017.

“As far as new rates in Helensburgh are concerned, it seems likely that some businesses will find their rateable value goes up by a considerable amount.

“Where an area, or a property, is deemed to have improved, your rateable value goes up.”

Asked whether the CHORD improvement work in the town centre was the main driver of the likely increase, Mr Trail said: “It will be one of them.

“But the assessor says he would be quite prepared to come and speak to retailers in Helensburgh and answer their questions.”

Following the conference on October 11, Mr Trail told the Advertiser he was unaware of any other Helensburgh-specific influences on business rates increases.

He added: “The rateable values are based on a fair market rent. Areas that have a strong demand for commercial property will push up rents and consequently also rateable values.”

But Mr Trail's forecast has been disputed by his fellow Helensburgh councillor, Vivien Dance, a director of the Helensburgh and Lomond Chamber of Commerce.

Mrs Dance, who also attended the retailers' conference, said: “Richard's comments were not very helpful, and I don't agree with his assessment.

“The revaluation process is a rent-based process, based purely on the rent applicable at a set day in a set year.

“The latest revaluation will be based on data from April 1, 2015 – a time when Helensburgh was suffering from a downturn in rents because of the impact of the over-running CHORD works.

“To suggest that because we've done up the town centre it will automatically bring about a negative impact in terms of higher valuations is actually contrary to what the position will be.

“Unless a landlord increased their rents on April 1, 2015 there will be no increase in rateable values and therefore in rates payable.

“I have a fair amount of information about the local property market because of my own business interests in the town, and I'm not aware of any case where there has been a significant rent increase which will result in the scary outlook Richard has suggested.

“I think the reality is much more realistic than that.”

Mrs Dance said the Chamber of Commerce was keen to invite someone from the valuation board to speak to local businesses about the situation.

Local business owner Dawn Perry, who formerly ran Acorn Art in West Clyde Street, warned that an increase in rates could result in more businesses leaving Helensburgh.

Ms Perry, who now runs the Oak Tree Gallery in West King Street, said: “It seems a bit harsh to hit businesses with an increase in rates just because the town centre now has better pavements, thanks to CHORD.

“Because of CHORD the town has seen several independent retailers go out of business or move away from the town centre, the main reason being the massive drop in footfall and the lack of provision for children in the town centre.

“You only need to look at Lomond Shores to see the contrast. They cater for all the family.

“Had CHORD provided facilities for the whole family then I could see the justification on increasing rates. But I fear an increase in rates could see more businesses leave the town.”

Chris Hudspith, owner of Nature's Harvest greengrocer in West Princes Street, said: “The rates are staggeringly high in Helensburgh as it is – I pay £5,000 a year for 25 square feet of shop.

“We had to put up with two and a half years of CHORD work, during which time several retailers went out of business, and many others struggled – our own turnover fell 30 per cent, and we're just about back to where we were before the work started.

“The thought of closing in Helensburgh and moving to Glasgow has crossed my mind – I'm not saying business rates would be the driver for that, but it wouldn't help.”

David Thomson, who is the chief assessor for the whole of the Argyll and Bute, West Dunbartonshire and East Dunbartonshire areas, told the Advertiser he and his team looked not at specific events, such as streetscape improvements, but at the impact those improvements had on market values in an area.

“To arrive at the rateable value of an individual property we analyse rentals for a whole range of property types,” Mr Thomson said.

“If an area has benefited in terms of increased footfall or attractiveness, retailers might say 'I fancy my shop being there'.

“We don't push up rateable values just because of something like CHORD, but we would expect the market to take account of them as time goes on.”

Mr Thomson said the new rateable values were due to be published in mid-December, but were still subject to review until then.

A spokesperson for the Helensburgh and Lomond Chamber of Commerce, echoing Mrs Dance's comments, said: "Business rates are decided on the basis of rent and not on town centre improvements.

"The current revaluation process will come into effect on April 1, 2017 and will be based on rents which were in force on April 1, 2015.

"This is the normal revaluation process and the last one was done in 2010 (based on 1st April 1, 2008).

"So if rents have not increased in recent years then there will be no impact on business rates and only if landlords have increased rates on the back of being able to get more because of CHORD will the town centre regeneration have any impact at all, this is a pure rent driven process.

"A survey undertaken over a year ago, showed that most rents had decreased in the previous three years because of the general business outlook/ properties available and other issues common to all towns.

"And it is worth pointing out that there is a transitional relief process to be applied where there are significant increases/decreases and this whole revaluation procedure has to be self funding.

"There is of course a robust appeals process for everyone.

"The Chamber of Commerce will be inviting a speaker from the Joint Valuation Board to attend a meeting early in the New Year to explain the process and to answer any questions. This will be an open meeting for non members as well, and we will invite the press too."

Non-domestic rates are calculated by multiplying each business's rateable value by the 'rate poundage', which is set by the Scottish Government and currently stands at 48.4 pence in the pound, though that could be changed when the government's budget settlement is published, also expected in mid-December.