New businesses opening on Union Street in Aberdeen will not have to pay rent or business rates for up to two years under newly announced plans.
The support package drawn up by the Our Union Street group is described as the “most generous set of incentives” being offered in the UK.
The group was launched in March with the aim of restoring the street to its former glory and has already received more than 10,000 ideas from the public on how to achieve this goal.
Of the 43 empty units on the street, all but two are eligible for Fresh Start Relief, which gives the occupier a 12-month period without having to pay business rates.
Those who take on long-term vacant units on the Granite Mile will also be offered grants of up to £35,000.
Our Union Street, led by Bob Keiller, has secured private funding and will top up the grants on eligible units to two years so landlords do not need to worry about rent while launching their new business.
This support will supplement a new £500,000 Empty Shops Grant Scheme being provided by Aberdeen City Council until 2025.
Attracting new businesses to Aberdeen’s Union Street
Mr Keiller said he believes the package on offer is one of the best anywhere in the UK and will give businesses time to “find their feet”.
He added: “We’ve spent several months listening to what the city wants – and people
unanimously want to see the units which line Union Street brought back to life with new occupiers.
“We want to attract and incubate a vibrant new set of businesses to bring footfall, excitement and sparkle back to the Granite Mile.
“To do this, we need to create an environment which is attractive to the best emerging
entrepreneurs both locally and nationally – one which takes the risk out of the high street and allows firms time to find their feet.
“We believe the package put together here will catch the eye of business owners across the UK and we look forward with working with local landlords and property agents to create new beginnings for multiple businesses on our high street.”
‘Everyone has a part to play’
Our Union Street has also engaged with hundreds of local groups and organisations to discuss the future of the city centre.
They plan to publish five key action areas to focus on next month.
In the meantime, Mr Keiller is encouraging businesses to locate on Union Street now after a “dramatic downward shift” in rateable terms.
He added: “One of the misconceptions we’ve observed is people think it is expensive to
locate on Union Street.
“However, the reality is very different following the most recent rates revaluation, which has seen the rateable value of many premises fall by more than a third.
“Aberdeen City Council has also, uniquely among its peer cities, cut many vacant property reliefs from 100% to just 10%, meaning that the owners of vacant premises are now having to pay rates.
“This means that it is in a landlord’s interest to get deals done, which we believe will also bring rents down.
“Everyone has a part to play if we are to bring prosperity back to this street; we need
landlords to be pragmatic about rentals, we need agents to be upfront about what units cost and how much can be saved, and we ultimately need to public to come out and support all of the brilliant businesses on Union Street both today and in the future.”
Conversation