Call to halt rates rise as firms suffer
EXPERTS are urging Chancellor Philip Hammond to freeze rises in commercial property tax bills in next month’s spring statement after figures revealed above-inflation hikes are hitting nearly a quarter of a million business premises.
After business rate bills began hitting doormats across England last week, new figures from real estate adviser Altus Group reveal that over 242,000 firms face rises of more than three per cent in their business rates from April – with nearly 52,500 suffering increases of more than 20 per cent.
It comes despite Mr Hammond’s pledge in the Budget to bring forward the switch in the inflation measure used to calculate annual increases from 2020 to this April.
This meant that business rates would increase annually in line with September’s lower Consumer Price Index (CPI) of three per cent.
But due to phasing in of the recent revaluation changes – which saw crippling rate hikes for lots of companies – many firms will see rises far greater than inflation.
Alex Probyn, president of Altus Group, called on Mr Hammond to freeze further rises in rates in his spring statement.
“Historically, the spring is when chancellors have made key fiscal decisions so it’s not too late for a freeze in inflationary rises to help cushion the blow for those in transition amidst challenging trading conditions.” Altus found that 119,665 small premises, 110,502 mediumsized premises and 12,107 large premises will all see tax rises greater than last September’s three per cent CPI rate totalling business rate rises of £712.75million.
Business rate hikes have been blamed for adding pressure to firms in the retail and leisure sector in particular, with celebrity chef Jamie Oliver the latest to fall foul.
His restaurant chains have been hit by huge bill rises, forcing him to close one of his London Barbecoa eateries and buy out the other in a rescue deal.
Recent figures showed the Government is set to cash in to the tune of £25billion as it reaps the rewards of last year’s business rates revaluation.
The amount of money raked in from businesses by local authorities in England is set to rise by £845million to £24.8billion for 2018/19.
The April 1 business rates overhaul saw 1.9 million properties in England revalued and left many businesses facing eye-watering increases.