Firms face £819m hike in business rates

COMPANIES face an £819million increase to their business rates unless inflation falls this month.

Rates rise every year in line with September’s inflation figure, which will be published next month.

Figures yesterday showed prices rose by .7 per cent in August. If that figure is unchanged this month, it will add £819million to English firms’ tax bills, according to consultancy Altus Group. The ailing retail industry alone would be forced to cough up £ 10million more than it already pays.

The rate increase will come into effect at the start of the new financial year in April. A .7 per cent rise would see the standard rate of tax on large premises climb above 50p in the pound for the first time since system was introduced in 1990. At present, the annual charge is 49.3p of rates for every pound of a property’s estimated rental value – so for a building valued at £ 00,000, the rates payment would be £98,600.

But if the 49.3p figure rises by .7 per cent, it would increase to 50.6p. The owners of a £ 00,000 building would then owe taxes of £101, 00.

The Daily Mail is campaigning to save Britain’s High Streets amid fears that skyhigh business rates and brutal competition from foreign internet rivals such as Amazon are wrecking our traditional shops.