Daily Mail

You should be as hamed, Mr Javid

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actual position,’ he said. ‘The list sets out a best case scenario. I challenged the Chancellor on it but I received no answer.’

Mr Javid’s letter – also signed by Chief Secretary to the Treasury David Gauke – said rates would fall in 250 of the 329 local billing authority areas in England – and detailed these in a list accompanyi­ng the letter.

According to an analysis by ratings specialist Gerald Eve, rates will fall in only 135 councils – and increase in 191.

Basildon, Harrogate, Canterbury and Stafford are among 124 local authoritie­s in line for an overall hike in business rates, as opposed to the cut promised by the Government. Basildon will see business rates rise by 0.15 per cent, instead of fall by 6.3 per cent. Harrogate will see a 2.27 per cent jump, as opposed to a 4.3 per cent cut, and Canterbury will see a 0.92 per cent hike, rather than a 4.3 per cent fall.

The analysis says Theresa May’s Maidenhead constituen­cy will see a 15.75 per cent increase in business rates – rather than an 8.3 per cent rise claimed in the list accompanyi­ng Mr Javid’s letter.

At the same time, the fall in rates in Mr Javid’s Bromsgrove constituen­cy will only be 9.29 per cent – as opposed to the Government’s figure of 15.2 per cent

Jerry Schurder, head of business rates at Gerald Eve, said last night: ‘The figures provided to Tory MPs show that the Department for Communitie­s is living in a parallel universe, one where there is no inflation and an automated appeals system that gives 5 per cent rates rebates across the board.

‘But back in the real world, the bills that will land on doormats in the next few weeks will be around 7 per cent higher than these figures suggest, while appeals will become both more expensive and less likely to succeed as the Government seeks to disincenti­vise businesses from challengin­g their bills.’

The Department for Communitie­s and Local Government last night rejected claims that the figures were misleading. It referred the Mail to the small print which states: ‘The average change in bills is before any inflation or appeals adjustment­s have been made.’

Tim Farron, the Liberal Democrat leader, said: ‘Sajid Javid complained about half truths and then he puts out this guff. These figures are pure misinforma­tion and halftruths. The Government should be ashamed of themselves. They are spinning so much on this issue they are making everyone dizzy.

‘While they put out data strewn with errors, small businesses are panicking about the impact of these massive rate hikes. It is time for a U-turn. The Government need to make it soon.’

Mr Javid was also under fire from business groups, MPs and small firms, which claimed he had also omitted key informatio­n from his letter about the devastatin­g impact rate rises will have.

The Institute of Directors described Mr Javid’s failure to mention the half a million firms that will see their rates go up as ‘disingenuo­us’ and warned that ‘tens of thousands’ could go bust.

Stephen Herring, the IoD’s head of taxation, said: ‘The Government is right that many businesses will see their rate bills go down, but the issue is the sudden and dra- matic increases that many high street shops and pubs are having to deal with. It is disingenuo­us to focus on average rate reductions and ignore the fact that many small firms are facing huge rate hikes. We could see tens of thousands of firms go bust.’

The British Retail Consortium said in a statement: ‘No one is a winner from this revaluatio­n. Business rates have increased from a third of rental value in 1990 to half today.

‘This is the highest commercial property tax in the developed world. The current system is not fit for purpose in the 21st century and needs fundamenta­l reform.’

One antiques dealer said the rates hike could be the ‘final nail in the coffin’ for many struggling high street retailers.

Amanda Wrigley runs Hirst Antiques in Notting Hill, London, with her mother Shirley Hirst, who founded the business 53 years ago. Mrs Wrigley, 36, said her rates would double while chains faced much smaller increases.

She told the Mail: ‘This is not a myth. We’re not making this up. This is going to affect business across the country. A lot of us are feeling the pinch already – but this could be the final nail in the coffin.

‘My mum is still working at the age of 80 and enjoys what she does. But it’s a lot less fun when first our rent and then our rates go up. It makes us wonder how we’re going to make it work.’

Yesterday another ratings specialist said Mr Javid had also failed to mention that thousands of firms in line for the biggest cuts to business rates will not benefit for the full reduction for years because of transition­al arrangemen­ts.

Analysis from ratings specialist Daniel Watney found half of firms set for the biggest rate cuts will not receive the full reduction for three years – and one in five will not see the full benefit at all before rates are revalued again in five years.

A Government spokesman said: ‘These are completely spurious claims by ratings agents with more interest in their own profits than a fair deal for businesses.

‘We have been clear how our figures are calculated and what they include. In fact the revaluatio­n of business rates means three quarters of businesses will see a fall, or no change, in their bills – 600,000 small businesses will pay no rates at all.

‘Far from stopping anyone appealing their bills, or setting a margin of error, our reforms will mean businesses will no longer need to go through these scaremonge­ring ratings agencies but instead can check, challenge and appeal their bills quickly and easily.’

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