Business rates increase

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Paul Turner-Mitchell

Businesses face a hike in business rates next year.

September’s Retail Price Index of 2.3 per cent will be used to calculate the annual increase in commercial property taxes introduced next April, unless it is capped in the Autumn Statement in December by the Chancellor.

Local business rates expert Paul Turner-Mitchell says: “Next April should have seen new rateable values apply to all properties which would have redistributed the liability for business rates fairly among ratepayers according to rental value of their properties as of April 2013. Whilst shops, cafes, restaurants and pubs with a rateable value of less than £50,000 will continue to benefit from the £1,000.00 discount next year, a freeze would at least go a little way of addressing the inherent unfairness which has been created especially in Greater Manchester.”

Commercial property values for shops in prime rental areas have fallen on average by 31 per cent since the last revaluation in 2008 which came into effect in 2010.