Business rates reform is not likely until at least 2017, according to Eric Pickles, the communities secretary.
It is easy to see why business rates is liked by governments on the whole – the cost of collecting the tax is low, the amount to be raised is predictable and the possibility of evasion is low. And of most interest for politicians, since this isn’t a personal tax, the chance of public disorder is very much reduced.
However, that does not make it a fair tax. The basis on which the tax is calculated was done in a vibrant economy with rising rents as opposed to the current one where retailers are struggling with shrinking revenues. This means that business rates have risen on a percentage cost basis to businesses.
We would hope that the Government will review this decision and look at ways to reduce the cost of doing business now.
In the meantime, CNG Business Services can help businesses reduce their business rates on a no-win, no-fee basis. Please contact us for further details or visit: https://cngbs.co.uk/cost_reduction/business_rates_appeals/
Source: Estates Gazette