Businesses in the South West face further frustrations as the Chancellor has failed to address core issues in his budget, according to the head of rating at the Bristol office of commercial property agency Colliers International.
Ben Batchelor-Wylam commented “While the Budget has featured measures designed to lessen the burden of business rates, the reality is that it fails to address a number of core issues in the rating system, not least an underfunded Valuation Office Agency, huge numbers of outstanding appeals, inappropriate and excessive pressures from HMRC and Local Authorities who are now becoming ever more influential in the way appeals are dealt with” he said.
John Webber, Head of Rating, at Colliers International, added: “The Chancellor’s Budget announcement on business rates is too little, too late. It is not the ‘Budget for business’ that the Chancellor wants us to believe, all the time he proposes swingeing rates’ increases for thousands of firms. Yes, for small businesses coming out of Small Business Rate Relief (“SBBR”), this Budget will offer an olive branch, but will not delay the inevitable increases coming down the road.
“We are still awaiting the Government’s response on the last review on business rates reform. Yet another review, announced today, into business rates is a waste of time and money. It is absolutely clear that more frequent revaluations – even, three-yearly – would go a very long way to improve the current system.
“Although on the surface, a rates discount for pubs seems a positive step, it is only for “small pubs.” European State Aid rules limit the amount of discount any one company can receive from Government. For larger pub chains, which may have already received Government support, this new discount is simply a fiction.
“With around 326 local authorities in England, the Chancellor’s ‘discretionary fund’ means just £990,000 per council to offer relief to businesses over five years. This is clearly a paltry amount given the Government has caused these staggering increases itself.”
