Business Rates Ripe for Review

Profitable or not, with a few exceptions, businesses have to pay business rates. The government has introduced some tax breaks for small firms and appeals or rebate applications may be made. Even so, for relatively small premises the charges may run to many thousands of pounds per year, or the difference between survival or closure. For example, a smallish pub in WA1 is listed on the valuation site with over £40K per year to pay in business rates. No wonder beer is so expensive. Nearby a shop not much bigger than many people’s living rooms comes in at over £20K! Just take a look at the government valuation website and prepare to be shocked. Couple this factor with certain sector impacts then it can be a little gloomy. Take retail for example, the shift away from bricks and mortar towards click and buy is leaving some shops on the edge. If you’re a manufacturer and have likely experienced falling exports then the story may be similar. These rates could tip you over. The basis of business rates is upon rental value, as set several years ago. So, time for a review? Downwards please, it’s cheaper than paying unempl
oyment benefits.

Lawrence Bellamy is a Professor at the Warrington School of Management, University of Chester