GRAHAM HISCOTT Firms ‘giving up tax battle’ Tories blasted as rate appeals plunge

FIRMS fighting business rate rises have plunged by nearly 90% since the Tories changed the appeal system.

The Government was yesterday accused of “choking off ” challenges from small companies crippled by tax increases.

And the appeal registration process is said to be so “tortuous” firms are put off applying for reductions, potentially leaving many paying over the odds.

Official figures have revealed more than 36,300 appeals were lodged by firms in England between April 1 last year – when business premises were revalued – and this June.

That marked an 86% drop from the near 266,900 appeals in the 15

High street chain Game Digital has vowed to carry on driving down costs after warning its full-year sales would dip. months after the last time business rates were reassessed back in 2010.

The collapse coincides with the introduction of a new ‘Check, Challenge, Appeal’ system, partly designed to cut down on the number of firms submitting spurious objections.

The sharp drop in appeals comes despite around seven in 10 proving successful.

The Earl of Lytton, a crossbench peer, told the House of Lords last year the system involved a “most tortuous” registration process. Mike Cherry, national chairman at the Federation of Small Businesses, said yesterday: “The Government must urgently get a grip on the business rates appeals platform, which places a huge administrative burden on small firms. Many simply don’t have the time or money to bring together a case using the overly complicated system.

“Choking off appeals is not the way to deal with a backlog. The solution is for a radical overhaul of unfair tax that small businesses struggle to navigate when things go wrong.”

The appeal figures come amid reports that the Valuation Office Agency – which decides them – is struggling to cope because of job cuts.

Mike Ashley’s Sports Direct has agreed a deal to keep House of Fraser’s flagship Oxford Street store open. The branch had been due to close, along with 30 others, under a radical plan by its previous owner.