Business Rates Set to Soar

Professional Services News

September’s Retail Price Index (RPI) has been announced at 5.6%, the highest for 20 years.  The knock on effect for commercial rate payers will be a substantial increase in business rate liabilities unless the call for reform of the business rates system is met by the Government. 

At present the Uniform Business Rate (UBR) is calculated each April based on the RPI in the previous September.  The Government does, however, have the power to delay such an increase and set a UBR below the RPI and there has been significant lobbying for this in the current economic climate.

The British Retailers Consortium are just one of the bodies urging the Government to overrule the increase based upon the adoption of the September RPI, to prevent an additional £1.35bn of business rates becoming payable.

Jessica Hand from FHP commented:-

“At a time when many businesses are battling for financial security I believe the Government should look to provide greater certainty for businesses by fixing the increase in business rates.  In the long term a review of the system is needed, with more predictable and more affordable increases.”

“For many businesses this has been a tough year and moving forward a proposed rocket in UBR from 43.3p to 45.7p per pound will do little to assist growth.

Businesses are reminded, however, that every commercial occupier is able to appeal their Rateable Value in an attempt to minimise their liabilities and should seek advice to determine if an appeal is merited.

“As well as appealing Rateable Value there are also many legitimate ways of reducing rate liabilities for owners of Empty Commercial Properties and our Business Rates team work closely with clients to ensure mitigation strategies are in place to minimise liability.”

For more information on business rates please contact Jessica on 0115 8414790 or jessica@fhp.co.uk, or a member of the FHP Rating team on 0115 9507577.