George Osborne’s Budget leaves businesses still facing a 5.6% hike in rates from April, based on last September’s rate of inflation.
Prior to the budget Marcus Andrews FRICS called on the Government to switch the annual hike in property business rates from RPI (Retail Price Index) to the lower (CPI) Consumer Prices Index. That would have seen rates bills only rise by 5.2%.
“The law allows the Government to change the basis of the annual rise. The Chancellor could have ordered a 0% rise, or even a reduction to help the business community,” says Marcus Andrews, who deals with Rating Appeals at Goadsby in Bournemouth.
The Chancellor did confirm that a scheme to allow businesses to apply for a deferral of the 2012/13 business rate increase would now come into effect.
Under this Rate payers can apply to defer 60% of their business rate bills rise for 2012/13. Firms will have to repay the rise equally across the 2014/15 financial years instead.
“It is a great pity that the Chancellor has done nothing really to reduce the 5.6% increase. The 60% deferral is mere ‘window dressing’ businesses will still have to pay up. The British Retail Consortium say that the 5.6% rise will add £350m to retailers’ costs across the UK” concluded Marcus Andrews.
