The impact of business rates on retailers will harm economic recovery
Published: 01 April, 2010
As a string of property tax increases come into affect this month, experts in the retail industry warn that millions of UK jobs could be at risk.
This April’s revaluation of business rates will see a substantial rise in many retailers’ property costs. This rise is compounded further by the annual inflationary increase, which is based on September’s retail price index (RPI) measure of inflation. Last year, firms were allowed to defer part of 2009’s hefty increase, caused by the high RPI figure in 2008, to this April. Many retailers will have to deal with these demands as well as extra costs due to revaluation.
Another property tax demand starting this April is the Business Rate Supplement (BRS), introduced in London to pay for Crossrail. The Mayor decided to levy the maximum possible increase he could, resulting in a five per cent rise in business rate bills for the affected properties.
The British Retail Consortium (BRC) wants the Government to reappraise this burden on retailers and introduce affordable increases. BRC director general Stephen Robertson, said: “Retailers already pay a quarter of the £24 billion in business rates in England – more than any other sector. April’s property tax hikes, including business rates revaluation, will hinder retailers’ vital role in contributing to the recovery.
“And we need compulsory business ballots to prevent Business Rates Supplements being abused by local authorities and a full restoration of rates relief on all empty properties.”
