UK
Small firms in London face uncertainty after details were revealed about the planned business rates rise for April, the first in seven years. While areas like Birmingham, Liverpool and Bradford are likely to see a decrease in their rateable value, businesses in London and the South East are likely to see an increase.
The Federation of Small Businesses (FSB) warned that London was in “serious danger of losing its vital support system of micro and small businesses”. The average micro business, which employs fewer than 10 people, will have to pay £17,000 to cover business rates from April, it added.
The FSB’s warning came after the government last week accused critics of “scaremongering”, saying that three-quarters of firms would see either no change in their business rates or would see them reduced.
FSB national chairman Mike Cherry described business rates system as “outdated and unfair”. He said that London is being particularly badly hit because of the big jump in the capital’s property values, which means that the vast majority of small firms cannot qualify for small business rate relief. “We have pushed hard in meetings with the Chancellor and the Treasury to create a ‘London weighting’ to increase the thresholds there,” he said.
A revaluation of business rates usually occurs every five years when the Valuation Office Agency conducts a revaluation exercise to determine the rateable value of all public and private non-domestic properties. However, the planned revaluation in 2015 did not take place and was instead postponed until 2017.
