Retailers in London are to be hit with massive business rates increases, while bills fall for most other regions in England and Wales, new government figures have revealed.
Figures published by the Valuation Office Agency yesterday show overall rateable values for the retail sector will rise by 4.7%.
However, the figures show rateable values in London are set to shoot up on average by 26.2%, with experts suggesting some businesses are in line for “enormous rises”.
The East (4%) and South East (1.4%) will also see increases in average rateable values.
But outside the capital most retailers are expected to see reductions when the new rates kick in next April.
The VOA figures suggest most regions in England and Wales will see a decrease in their rateable values, with the biggest beneficiary being the North East, which will see a reduction of 6.8%.
As part of the changes to base rates on 2015 rather than pre-recession 2008 property values, retailers are to see a reduction of 1.7p in both the small business and standard rates multiplier.
The government has also published options for amending the transitional rate relief system, which aims to mitigate the impact of rate bill increases by staggering the cost over the next five years.
“The figures released today suggest that most retailers outside London will see a decline in their rates bills,” said ACS chief executive James Lowman. “However, as each of the premises is rated according to its own specific location, size and features, we do not yet know how the convenience store and forecourt sector are specifically affected.
“We still believe that the rates system overall is flawed and should be changed to incentivise investment, and should track more closely to economic circumstances. We remain concerned that not all sectors are paying their fair share of business rates, and that stores with ATMs or those operating on petrol forecourts are attracting excessive rates bills, especially when compared to internet distribution facilities.”
Local government minister Marcus Jones said: “This government is cutting business rates. Yet local firms also need to be confident that the rates they pay are accurate and fair, no matter where they are in country, and these updates will give them that reassurance. We are committed to helping all businesses flourish and as we make the system fairer up and down the country, nearly three quarters of companies will see no change, or even a fall, in their bills - including 600,000 who from next April will have their bills cut altogether.”
No comments yet