Half of businesses expected to contest ‘significant’ rate rises

HALF of businesses are expected to appeal against rate rises, the Chancellor has admitted, adding to the backlog from the last revaluation seven years ago.

Philip Hammond said he recognised firms faced “very significant” increases in business rates, as Tory MPs warned they would put the future of towns and villages across the UK at risk. Mr Hammond pledged to use his March 8 Budget to help those worst affected. The Valuation Office Agency is already facing a backlog of more than 200,000 appeals from the last revaluation in 2010.

Tom Tugendhat, the Tory MP, urged the Chancellor to recognise that businesses were more than just cash generators for the Treasury. His fellow Tory Geoffrey Clifton-Brown said the Government needed to re-examine the system as he suggested it benefited large out-of-town stores unfairly.

The Government has already said it will bring forward proposals at the

Budget to help small businesses hardest hit by the revaluation.

Mr Tugendhat welcomed that, but asked Mr Hammond in Parliament if he was aware that his proposals could change “very much the culture that is at the heart of our community” in his west Kent constituency.

Mr Hammond said he “absolutely” recognised that concern, adding: “We have said we will look at how we can best help those who are most seriously affected.”

Mr Clifton-Brown, said: “In my constituency in Stow-on-the-Wold the actual business rates payable by Tesco, five minutes’ walk from the centre, is £220 per square metre, whereas the delicatessen in the centre of the town will pay £500 per square metre. Don’t you think that the system of rating valuation needs to be re-examined?”

Mr Hammond said the current system “is what it is” and there were “significant challenges” that needed to be looked at.

Under the rate changes, three quarters of firms will see their payments decrease or stay the same, while for one quarter bills will increase.