Swindon & Wiltshire News
More concerns over business rates ‘bombshell’ as Chancellor comes under pressure
Chancellor Philip Hammond has told Conservative MPs he is listening to their concerns about a shake-up in business rates.
MPs in shire counties are warning that the changes will lead to “eye-watering” bill rises for some local firms.
They are particularly worried about independent retailers and local pubs in town centres.
Meanwhile, multinational corporations like Amazon on out-of-town business parks will save hundreds of thousands of pounds a year.
Business rates are being updated for the first time in seven years to bring them into line with property values.
Business groups and some Tory MPs are urging Mr Hammond to use next month’s Budget to mitigate the impact.
This week, Ian Larrard, director of Swindon & Wiltshire Initiative at Business West, said: “There’s been much in the news this week about business rates.
“The problem is that property hasn’t been valued since 2008 – and that’s a big problem.
“After such a long period of time, the government needs to be far more clear on the guidelines as businesses have been telling me they don’t know what impact it will have on them.”
“By not being clear on the guidelines, the government is not doing itself any favours with business.
“We urge the Chancellor to think very carefully about what he announces in the March budget, as in many cases it will be an absolute bombshell for businesses – especially for small businesses.”
Meanwhile Dean Speer, a partner at property consultancy Myddelton & Major, reminded business owners that Small Business Rates Relief is not given automatically and has to be claimed.
He said: “It is important that businesses ensure that they are claiming Small Business Rate Relief if they are they are entitled to. To claim SBRR a business must only occupy one commercial property.”
“Businesses should check their rateable value because, as well as this change to SBRR, there has been a re-evaluation of all commercial properties from April.
“To apply for the relief businesses simply have to fill in a form provided by their local authority.”
“Across the country it is thought that around 600,000 small businesses will pay no business rates at all – a saving worth up to £5,900 in 2017-18, with an additional 50,000 benefiting from tapered relief.”
The threshold for 100 percent relief will rise to £12,000 from £6,000 with tapering relief between £12,000 and £15,000.
Businesses in the countryside with a local population below 3,000 can get between 50-100% off their rates. Charities and sports clubs get up to 80 percent rate relief.
Empty, newly-occupied properties, and businesses in enterprise zones can also apply for relief. Some properties, such as agricultural land or religious buildings are exempt.
Kilpatrick & Co have already advised Business Biscuit readers on business rates appeals here http://www.businessbiscuit.com/property/3964-rates-appeal while property agent Andrew Stibbard’s take on the changes can be found here http://www.businessbiscuit.com/experts/3941-ratesas
