Call for business rate progress

UK SMES are calling for business rates to be made both simpler and more flexible, according to a new study, with half of firms in Scotland saying not enough is being done at government level to help with rate relief.

The report from Close Brothers Asset Finance (CBAF) found that 71 per cent of firms in the UK on average believe business rates must be made simpler and more flexible. That fell to 46 per cent for those with turnover of less than £250,000 but increased to 83 per cent for firms turning over more than £10 million.

Business rates are a tax on business properties set by the government that are collected by local authorities and are the way that those who occupy non-domestic property contribute towards the cost of local services.

And CBAF acknowledged that rate relief is handled differently in England, Scotland, Wales and Northern Ireland.

The survey revealed that in Scotland, while 50 per cent said not enough is being done by the government to assist businesses with rate relief, 31 per cent held the opposite view and about a fifth of respondents said they don’t pay rates at all.

Furthermore, rates have been rising steadily in most regions over the past two years, with nearly one in ten saying they’ve risen “steeply”, and Scotland among areas seeing rises above the UK average.

CBAF chief executive Neil Davies said 51 per cent of those polled feel the rates they pay are “just right” against 32 per cent who feel they are too high, which he said is consistent across regions, industries and business size.

“In addition, more businesses (44 per cent) feel they are getting value for money compared to those who feel they are not (39 per cent).

“Our study has found that it’s a nuanced picture out there, and what I mean by that is that the call for clarity is not driven by cost concerns.”