Kentish Express Ashford & District
New rates mean smaller firms will be given a cut
Council finance chiefs say small firms will be paying either no business rates or will get a significant cut, following valuation changes.
The Valuation Office Agency has revalued national business rates which are collected by councils and raise around £23bn for public services every year.
It has meant the majority of businesses face smaller rates bills. The Chancellor Philip Hammond stepped in to help some companies facing higher bills.
In Ashford, council bosses say 980 businesses will see rates rises above 20%, but said 810 of these businesses will be eligible for reliefs.
In a joint statement, coun- cil leader Gerry Clarkson and cabinet members Cllr Graham Galpin and Cllr Neil Shorter said: “We welcome the announcements by the Chancellor in his budget.
“We take heart from recent robust government statements that it recognises that small businesses form the backbone not just of our economy but of our communities. Ashford Bor- ough Council collects but does not set business rates, though may have some input should it establish a hardship fund.
“While we understand that some businesses will be disappointed to see an increase in their bills, this revaluation is indicative of stronger economic conditions where property value rises. We also look forward to 2020, which is the year by when local authorities will retain all revenue raised from business rates – circumstances which we believe will benefit the whole of the Ashford borough, including our rural areas.”
The council says the rise in bills for small businesses will be restricted. For those with a rateable value up to £20,000 the increase will be 5% in the first year. For those up to £100,000 the increase is limited to 12.5%.
Meanwhile only 68 companies with a rateable value of £100,000 are likely to be affected and will pay an increase of 42% in the first year.
With t he e xt r a s upport granted by the Chancellor, small business losing rates relief will see bills limited to £600 per year. Then a £1,000 rate discount will be brought in for pubs with a rateable value of £100,000.