Zooming Business Rates Face the Ire of Operators
Business operators are up in arms following the publication of revised business rates for the city of
The bone of contention is the period which has been taken into consideration for calculation of the rates. While Government has followed a traditionally used formula to come to its conclusions, business operators point out that the economic conditions have undergone a drastic change for the worse very recently. This is not reflected in the data collected during the period 2003- 2005 for evaluation as per the standard formula. Office rental values are no longer comparable to those that existed in this period. The Government needs to adapt its strategy to address recent changes in the economy, say the operators.
Tax boost which will reflect the nearly 20- 40% hike in rates will be an unnecessary and unfair burden on businesses which are already reeling under the downturn. The government should, on the contrary be taking active steps to boost the economy and reinforce the confidence of traders and consumers alike. The Chairman of the London Council subscribed to this view while stating that the government’s stand lacked foresight.
Considering that retail businesses and offices to let in London will be the worst hit by the high rates, Ms Peace, CE of British Property Federation appealed to the government for a more reasonable and viable approach.
Giving in to the large scale protests, the government has made amends in the form of announcing an alleviation programme amounting to £2 billion for badly affected firms.
