A beloved independent coffee shop in Sheffield has been compelled to shut down permanently, citing an unsustainable 327% surge in business rates as the primary cause. Frazer's Proper Coffee Drive Thru, located in Ecclesfield, South Yorkshire, ceased operations after the rateable value of its property skyrocketed from £15,000 to £64,000.
Financial Strain Forces Closure
Owner Frazer Habershon revealed to the BBC that this dramatic revaluation would escalate his annual business rates from £7,350 to nearly £32,000. He expressed profound disappointment, stating the business was performing well and enjoyed strong community support despite the challenging economic climate for hospitality.
"We were holding our own in a tough economy for the hospitality sector, and we were really supported by the whole community," Habershon explained. "But the rates are changing, and that huge increase was going to cripple us. So we had to close."
Political and Administrative Context
The new rateable values were initially announced by Chancellor Rachel Reeves in last year's Autumn Budget. In a Facebook statement, Frazer's detailed extensive but unsuccessful efforts to find a resolution, engaging with Sheffield City Council, local MPs, and the Valuation Office Agency (VOA).
The statement further noted: "We now face debt collection proceedings after trying negotiations since October 2025."
Calls for Systemic Reform
Local Labour Councillor Craig Gamble Pugh responded to the closure by advocating for substantial reform. "This just proves we need a root and branch reform of business rates so as to support the small businesses, entrepreneurs, innovators," he remarked.
A spokesperson for the VOA commented on the process, stating: "If a rate-payer believes their valuation is incorrect, they can tell us through their online service and we will progress their case as quickly as possible."
Broader Implications for Small Businesses
This incident highlights the acute pressures facing small enterprises across the UK, particularly within the hospitality sector. The closure of a community-supported business due to soaring fixed costs raises significant questions about the sustainability of the current business rates system and its impact on local economies.
