Business rates will sit at their highest level since their introduction in 1990 next month, a CVS surveyors report has found.
Business rates will sit at their highest level since their introduction in 1990 next month, a CVS surveyors report has found.
From 1 April 2016 the ‘uniform business rate’ will reach 49.7 pence to the pound, costing businesses an extra £188m in the financial year, while the government is also ending business rate discounts for small retail properties which will cost an extra £284m.
Together these additions will see £400m added to rates bills overall in 2016/17.
Business rates are currently linked to the Retail Price Index, which CVS said should be changed to the Consumer Price Index.
Mark Rigby, chief executive at CVS, said: “The news that the business rates levy has reached its highest ever level will be yet another source of frustration for commercial occupiers feeling the squeeze. This is a hangover from a range of poor government policy decisions which are causing pain for businesses, from SMEs to major multi-nationals.
“To add insult to injury, the government’s use of out-dated measures of inflation will stop firms getting a reduction in their business rates this year. What could have been positive news for firms is instead yet more pressure on overheads. The link to RPI is costing firms money and is another sign that the current rates regime is clunky, archaic and not geared towards serving businesses.
“Switching to CPI is easily done and would mean less volatility and more clarity for businesses across the country. Fundamentally the business rates system needs to be fairer and more transparent and we call on the Chancellor to address this in his Budget.”
Over a quarter (26%) of owners surveyed said the cost of running their business was making them consider other forms of employment or making staff redundant.
Almost all business owners (92%) don’t expect the government to demonstrate its pro-business credentials by easing the burden of business rates.
https://youtu.be/aor3CiNDbxA
