Thanks to the end of transitional relief, 67,000 small businesses will be hit with above-inflation increases in their bills.
The relief for small businesses ends in April 2015 which will happen as George Osborne’s postponement of property value revaluations. Business rates are directly tied to this meaning tens of thousands of firms will be hit with a big rise.
A range of businesses will be hit including pubs and cafes, shops and workshops, but 7,000 will be bearing the brunt of this change. 6,500 will see their rates rise by more than a third, while a further 600 will them double. In one specific case, a Bristol newsagent’s kiosk will see a 534% increase.
It won’t just be small properties that will be hit either, locations such as London Zoo and The Oval will see some big increases as well.
The relief was originally introduced after the revaluation in 2010 that followed the 2008 property boom. This was to help diminish the effect of rising bills until a further revaluation was carried out next year. This should have lowered the bills as they’re still based off 2008 prices, but now it’s been postponed rates will shoot up.
Jerry Schurder, the head of rating at Gerald Eve who looked into the changes, said: “The government brought in the relief because they understood that small businesses could not deal with big shocks. Now government policy will impose a double-whammy. Not only will they not benefit from the adjustment that a revaluation would have brought by aligning values with the market, but they will also face inflation-busting increases in their bills.”
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