| The government has
confirmed that 60% of business rates will
fall next year as a result of revaluation
and that it will not collect a penny more
of extra revenue as a result of the 2010
revaluation, which is carried out every
five years. However, rates bills for some
businesses will rise significantly. The
government recently announced that it will
remove the requirement to re-apply for
small business rate relief, which can
reduce business rates by up to 50%, at
revaluation, reducing bureaucracy for
small businesses and billing authorities.
John Cridland, CBI Deputy
Director-General, said:
“We’re concerned by the government’s
announcement on business rates today.
Although business rates will fall overall,
in some areas of the country they will
rise sharply, which is worrying at this
critical time for the economy.
We called for the government to cap
business rate increases at lower levels
than those announced today. For example,
we called for a maximum rise of 7.5% for
larger properties, but the government has
announced a maximum rise of 12.5%. This is
worrying.
We’re particularly concerned about the
potential for sharp rises in business
rates in London, where properties were
revalued near the height of the market.
Given the economic situation, a
significant rise in business rates could
make a critical difference to companies
trying to survive the recession.”
Internet links:
CBI press release
Press release |
