New levies on retailers from today
A new month, and more things for retailers to worry about. The British Retail Consortium has today called on the government to reappraise the property taxes they have applied to businesses, saying new increases threaten “to harm retailers’ ability to support the millions of jobs they provide”.
The five-yearly business rates revaluation comes into effect today and the BRC says this latest revaluation will result in a “substantial” rise in many retailers’ property costs – but this is not all – many retailers will also have to deal with a high annual inflationary increase on their rates, it says. Because the jump in RPI in September (on which the rise is based) in 2008 was so great, firms were allowed to defer part of 2009’s increase to this April.
In addition, the Business Rate Supplement (BRS) starts today – this tax has been 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 BRC notes.
Stephen Robertson, British Retail Consortium Director General, said: “We supported the announcement in the Budget to give the smallest shops a year’s business rates holiday, but there was no help for larger retailers. Property taxes should be made affordable for all retailers – regardless of their size.”
“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,” he added.
If you are seeking retail premises for sale or to let, or are looking to market your retail properties, then contact Chris at Novaloca.com on 01767 313 380 to find out how we can help you.
For more on today’s changes in business rates, you can listen to a BBC podcast on the subject or find out more about the detail of the rate reliefs available.
