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Cap business rate hikes at 5%, says BRC

The government has been urged to do more to ease the burden on retailers as a result of the upcoming change in business rates.

Business rates bills from April 2010 have been reassessed to take into account more up-to-date rateable values of properties.

The British Retail Consortium (BRC) said that once the changes take place, retailers will pay £5.83bn of the total £23.44bn revenue the government receives from business rates.

Although some businesses will see their rates fall as a result of the changes, the BRC wants to see more done to ease the transition for businesses that will see an increase in their bill.

The retail lobby group has called on the government to cap rises at 5% in the first year, and has condemned the allowance of rises up to 12.5%.

Tom Ironside, BRC director of business environment, said: “Property is one of retailers’ biggest costs. Shops have to be all over the country, near where people live.

“That leaves retailers paying a quarter of all business rates despite making-up 8% of GDP. In some of the toughest trading conditions seen in years, a scheme that regards a 12% hike in retailers’ rates bills as OK isn’t doing its job.”

Ironside said that although the government had key elements of the reassessment of rates right, more needed to be done to help retailers cope with the transition.

This was posted in Bdaily's Members' News section by Ruth Mitchell .