Cost of business rate Increase

Yorkshire Street, Rochdale Town Centre

Following the release of September’s inflation figures last week, the Chamber was able to reveal the cost to businesses in Greater Manchester of next year’s business rate increase, as the Retail Price Index inflation figure for September is used to set the annual increase.

As RPI inflation is 2.6%, businesses across Greater Manchester will see business rates increase by £26.7m, the equivalent to employing 1,162 people.

Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce, said: "Although RPI inflation is much lower than the 5.6% last year, businesses will take no comfort in the fact that business rates continue to increase at a time when Government sees the need to freeze council tax increases. Government has yet to confirm whether it will implement the rise, but as yet there is no indication that it will freeze rates.

"There is also the issue of the delayed revaluation of business rates. Business rates are based on rentable values which have fallen in this area, so bills will stay higher when they may actually have fallen."

Following last week’s figures, the Chamber can also reveal the breakdown of costs for the business rate increases in each of the ten local authority areas of Greater Manchester:

Bolton: £2.3m - 114 employees' pay
Bury: £1.3m - 61 employees' pay
Manchester: £7.9m - 305 employees' pay
Oldham: £1.5m - 75 employees' pay
Rochdale: £1.6m - 73 employees' pay
Salford: £2.1m - 88 employees' pay
Stockport: £2.4m - 108 employees' pay
Tameside: £1.5m - 73 employees' pay
Trafford: £4.0m - 160 employees' pay
Wigan: £2.0m - 99 employees' pay
All Greater Manchester: £26.7m - 1,162 employees' pay