the Business Forum and
the Economic Partnership
in Brighton & Hove
Homepage    BCRP Intranet    Funding    Events    Knowledgebase    Links    About us     Contact us
Key projects
Crime
reduction
 


Inward
investment
information
 


Licensee
Forum
 

Workforce development 

Transport
 

Business &
climate
change

Property &
Development sites

Business
Improvement
Districts

Housing
 

Strategy
 

Consultation opportunities
 

Brighton & Hove Business Forum
8-11 Pavilion Buildings, Brighton, BN1 1EE
Tel: 01273 735442
Email: info@brighton
business.co.uk

© Brighton & Hove
Business Forum

News - 27 September 2009

Retailers need more help with disproportionate rates

The British Retail Consortium (BRC) claims that the Government’s plans for cushioning the effects of next April’s Business Rates increase do not go far enough. The increase will leave retailers forking out £5.83 billion of England’s £23.44 billion total business rates revenue.

Responding to the Department for Communities and Local Government’s consultation on Transitional Arrangements for England the BRC said the Government was right on the scheme’s duration and right on how to pay for it but wrong to expect it to balance its books within each year.

The rateable value of all England’s business premises has been reassessed based on property values on 1 April 2008. The Business Rates bills companies face from April 2010 will be the first based on this revaluation.

Some will see their bills rise as a result of revaluation, others will see them fall. Transitional Arrangements are intended to smooth-out the effects of the revaluation for those businesses worst affected. For example, without transition, supermarkets are expected to face an average 12% increase in their business rates bills. There are also large regional disparities in business rates bills with retailers in the South West and London facing the biggest increases.

In its response to the consultation, the BRC says the Government is right to suggest capping the increases and meeting the cost of that by also capping the benefits for those businesses whose bills will fall. This is fairer than financing the capping by a general supplement on all beneficiaries.

It is also right to plan to run the Transitional Arrangements for the full five years until the next business rates revaluation.

But, against a background of the toughest trading conditions for years and falling shop prices, the Government should be capping business rates rises at 5% in the first year. Instead it is still prepared to allow rises as high as 12.5% in year one and up to 25% in years four and five.

And insisting the scheme is revenue-neutral within each year, rather than simply across its five-year life, will limit its ability to help hard-pressed retailers at the time when they most need it.

Tom Ironside, British Retail Consortium Director of Business Environment said, “Property is one of retailers’ biggest costs. Shops have to be all over the country, near where people live. That leaves retailers paying a quarter of all business rates despite making-up 8% of GDP. In some of the toughest trading conditions seen in years, a scheme that regards a twelve per cent hike in retailers’ rates bills as OK isn’t doing its job.

“At a time when shop price deflation has arrived, piling costs like these onto retailers is a direct threat to their ability to maintain and create jobs. Retailers need to be cushioned from the worst effects of revaluation on their business rates bills.

“The Government has got some key elements of the arrangements right but it needs to ensure it can deliver enough help to retailers at the time it is most needed.”


Read related items on:
Retail, pubs, clubs and restaurants
Lobbying
British Retail Consortium


Browse our business Knowledgebase or search by keyword


Headlines

16 May 2018
Can you help us help rough sleepers? Search for a venue to provide shelter
15 May 2018
New Research Reveals Cost of Opening A Business in Brighton: £6,000 11 May 2018
Tech firm SaleCycle to open new office in Brighton, creating 30+ new jobs 4 May 2018
Get involved - National Numeracy Day This 16 May 1 May 2018
BUSINESS IMPROVEMENT DISTRICT INDUSTRY CELEBRATES 300 BIDS 1 May 2018
Barclays' High Growth & Entrepreneurs Awards 2018 launch to celebrate start-up leaders in the UK 30 April 2018
Barclays launches major drive to help SMEs tackle Cymbercrime 24 April 2018
An evening with Chris Fox, Lib Dem Peer 24 April 2018
"A triumph of innovation" 13 April 2018
Brighton city Centre Vacancy Rates continue to buck national trend 12 April 2018
The Ivy in the Lanes Set to open 2 May 2018 11 April 2018
Free Dr Bike Service Returns 20 March 2018
Brighton named most entrepreneurial city AND second best for student happiness according to Fresh Student Living 19 March 2018
A Meeting with Chris Fox, Lib Dem Peer - Why Business Matters 14 March 2018
Better Business for All Event with BEIS 7 March 2018
Brighton celebrates women in tech as Spring Forward festival returns for a fourth year 6 March 2018
Six months of success for BTN BikeShare 2 March 2018
Sustainability in Action masterclasses for Sussex businesses 2 March 2018
Doing Business in China comes to Brighton 1 March 2018
Brighton & Hove Chamber of Commerce presents: Protecting your brand- a guide for fast growth businesses 1 March 2018
Long haul passengers boost local economy and jobs, according to new Gatwick report on the 'Visitor Economy' 28 February 2018
Save time reporting crime 27 February 2018
Warren Morgan Resigns from Brighton & Hove City Council 23 February 2018
Brighton Technology Company, Paxton Ranks in Sunday Times 100 Best Companies to Work For 23 February 2018
Greater Brighton's Commercial Property Database 22 February 2018
SE-ASSIST - Launch of Loan Capital in Greater Brighton 19 February 2018
House Price update Q4 2017 19 February 2018
What would you do in a crisis? 19 February 2018
The investment journey for high growth entrepreneurs 9 February 2018
Make Change Count 2018 - helping rough sleepers in Brighton & Hove 8 February 2018
Brighton Technology Company Paxton Announces Recipients of New Scholarship Programmein Association with the University of Brighton 8 February 2018
Cyber London Accelerator Invites Summer 2018 Entries 8 February 2018
Innovate UK Launches Strand 2 Emerging and Enabling Technologies Sector Competition 8 February 2018
Success In Sussex As Food And Drink Heroes Crowned Winners 8 February 2018
UK Games Fund - Fourth Round Open to Applications 8 February 2018
Innovate UK & Prince's Trust Launch Young Innovators' Programme 6 February 2018
Brighton & Hove Food Partnership launches 'Kit Out The Kitchen' crowdfunding campaign 2 February 2018
Brighton & Hove Council and Crest Nicholson win £15m government funding to kickstart King Alfred project 1 February 2018
Could a Utilise Plus Programme grant help you? 1 February 2018
Shoreham Port Facilitates Huge Operation