Business rates set for five-yearly upheaval

Business
rates are set to double over the next five years in some regions,
with central London set to be worst hit.

New rates published by the government will see some areas’ rates fall, but
others will see increases range from a low of 5% for small properties or 12.5%
for large properties in the first year (2010/11) to a high of 15% for small
properties to 25% for large properties in the fifth year (2014/15).

“The impending business rate increases will have a major effect on
businesses. For this reason it is essential all businesses react appropriately
to avoid a painful blow to balance sheets,” said Denise Trollope, director at
GVA
Grimley.

“It is important to note that there will be significant variations in rates
payable between different property types and geographic areas due to the
combination of new rateable values and a recalculated UBR.

So some areas outside of London will actually welcome today’s announcement as
rates will be significantly reduced in some areas, such as the Midlands.”

The government said one million businesses will see their rates fall next
year.

For the minority paying more the government is putting in place a £2bn relief
scheme self funded by businesses that will limit and phase in increases.

“The revaluation will make sure each business pays its fair contribution and
no more – it will not raise a single extra penny for government,” said local
government minister Rosie Winterton.

Further reading:

Visit the Valuation
Office Agency

Farepak cheques sent out to
customers