Business rates: help the debate

Christian Spence, Research Manager at Greater Manchester Chamber of Commerce

Christian Spence, Head of Business Intelligence at Manchester Chamber of Commerce, has been looking at business rates and their impact.

"Our members have been telling us for many years that the way the current business rates system operates is grossly unfair.

"Businesses are expected to pay a percentage of the assessed rental value of their property – regardless of whether they make any profit – without any tangible benefits in return. It is, in essence, a tax on businesses that disproportionately hits smaller and young businesses hard.

"Last month we found out how much more each and every business with dedicated premises will have to pay from April 2014 - 3.2%.

"For Greater Manchester the increase in the total business rates bill will be around £35 million, enough to employ 1,500 people on GM’s average salary."

The government has chosen to delay the next revaluation by two years, meaning that businesses are having to pay this tax as a proportion of the 2008 valuation of their premises until 2017, a value which will, in some cases have fallen by half since then.

The Chamber has joined a campaign to encourage businesses to sign a petition to ensure that a debate is held in Westminster on the issue of business rates.

Mr Spence added: "We would encourage you to make your feelings known so, if you’d like to, please follow the link below."

http://epetitions.direct.gov.uk/petitions/54748